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)