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

Prepare a statement of cash flows using the indirectmethod.

Transcribed Image Text:

Cash Receivables Inventory Plant assets FAIRCHILD COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2010 AND 2009 2011 Accumulated depreciation Long-term investments (Held-to-maturity) Accounts payable Accrued liabilities Bonds payable Capital stock Retained earnings Sales Cost of goods sold Gross margin Selling and administrative expense FAIRCHILD COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2010 Income from operations Other revenues and gains Gain on sale of investments $1,800 1,750 Income before tax Income tax expense Net income 1,600 1,900 (1,200) 1,300 $7,150 $1,200 200 1,400 1,900 2,450 $7.150 $6,900 4,700 2,200 930 1,270 80 1,350 540 $810 2010 $1,100 1,300 1,900 1,700 (1,170) 1,470 $6,300 $ 800 250 1,650 1,700 1,900 $6,300