Fairchild Company __Direct and Indirect Method Cash Flow

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

FAIRCHILD COMPANY
Comparative Balance Sheet
as of December 31 2010 and 2009
	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, 2010
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.

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fairchild-direct_method_cash_flow.xlsx
fairchild-cashflow_indirect.xlsx