Condensed financial data of Fairchild Company for 2010 and 2009 are presented below.
| FAIRCHILD COMPANY | ||
| Comparative Balance Sheet | ||
|
as of December 31 2010 and |
||
|
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, |
|
| 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
Complete the statement of cash flows using the direct method and indirect method.