Acc423-Condensed financial data of Fairchild Company for 2012 and 2011 are presented below. 1 answer below »

Condensed financial data of Fairchild Company for 2012 and 2011 are presented below.

FAIRCHILD COMPANY

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31, 2012 AND 2011

2012

2011

Cash

1,795

1,104

Receivables

1,753

1,290

Inventory

1,595

1,908

Plant assets

1,906

1,695

Accumulated depreciation

(1,203)

(1,167)

Long-term investments (held-to-maturity)

1,305

1,480

$7,151

$6,310

Accounts payable

1,215

789

Accrued liabilities

213

234

Bonds payable

1,414

1,636

Common stock

1,905

1,693

Retained earnings

2,404

1,958

$7,151

$7,151

FAIRCHILD COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2012

Sales

6,795

Cost of goods sold

4,694

Gross margin

2,101

Selling and administrative expenses

939

Income from operations

1,162

Other revenues and gains

Gain on sale of investments

85

Income before tax

1,247

Income tax expense

531

Net income

$716

Additional information:

During the year, $74 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $270.

Instructions:

Prepare a statement of cash flows using the indirect method. (If an amount reduces the account balance then enter negative sign)

"Is this question part of your assignment? We can help"

ORDER NOW

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *