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Fairchild Company: Statement of Cash Flows and Direct Indirect

Prepare a statement of cash flows using the direct & the indirect method for Fairchild Company.

Financial data for Fairchild Co for 2009 & 2010 are attached.

Condensed financial data of Fairchild Company for 2010 and 2009 are presented below.

FAIRCHILD COMPANY
Comparative Balance Sheet
as of December 31 2010 and 2009
2010 2009
Cash $1,800 $1,100
Receivables 1,750 1,300
Inventory 1,600 1,900
Plant assets 1,900 1,700
Accumulated depreciation (1,200) (1,170)
Long-term investments (Held-to-maturity) 1,300 1,470
$7,150 $6,300

Accounts payable $1,200 $ 800
Accrued liabilities 200 250
Bonds payable 1,400 1,650
Capital stock 1,900 1,700
Retained earnings 2,450 1,900
$7,150 $6,300

FAIRCHILD COMPANY
Income Statement
For the year ended December 31, 2010
Sales $6,900
Cost of goods sold 4,700
Gross margin 2,200
Selling and administrative expense 930
Income from operations 1,270
Other revenues and gains
Gain on sales of investments 80
Income before tax 1,350
Income tax expense 540
Net income $810
Additional information:
During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2010. Cash dividends were $260.
Instructions: a) Complete the statement of cash flows using the indirect method.
b) complete the statement of cash flows using the direct method

Attachments

Solution Summary

Your tutorial is attached in excel and each amounts "points" to the data given so you know the source for each amount (click in cells to see this). This only shows the indirect method (not the direct method).

$2.19