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E23-11 Fairchild Company

Price: $2.50


E23-11 (SCF—Indirect Method) Condensed financial data of Fairchild Company for 2012 and 2011 are presented below




2012 2011
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
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 sale 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 2012. Cash dividends were $260.

Instructions
Prepare a statement of cash flows using the indirect method.

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