Condensed financial data of Fairchild Company for 2012 and 2011 are presented be
ID: 2376713 • Letter: C
Question
Condensed financial data of Fairchild Company for 2012 and 2011 are presented below.
Additional information:
During the year, $75 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $268.
Prepare a statement of cash flows using the indirect method.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2012 AND 2011
2012
2011 Cash
$1,792
$1,110
Receivables
1,744
1,295
Inventory
1,589
1,920
Plant assets
1,906
1,702
Accumulated depreciation
(1,200 )
(1,170 ) Long-term investments (held-to-maturity)
1,302
1,476
$7,133
$6,333
Accounts payable
$1,215
$793
Accrued liabilities
208
233
Bonds payable
1,405
1,638
Common stock
1,892
1,710
Retained earnings
2,413
1,959
$7,133
$6,333
Explanation / Answer
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
$1,805
$1,097
Receivables
1,753
1,301
Inventory
1,594
1,919
Plant assets
1,901
1,696
Accumulated depreciation
(1,191
)
(1,167
)
Long-term investments (held-to-maturity)
1,306
1,475
$7,168
$6,321
Accounts payable
$1,205
$794
Accrued liabilities
205
246
Bonds payable
1,410
1,637
Common stock
1,900
1,698
Retained earnings
2,448
1,946
$7,168
$6,321
FAIRCHILD COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2012
Sales
$6,845
Cost of goods sold
4,708
Gross margin
2,137
Selling and administrative expenses
924
Income from operations
1,213
Other revenues and gains
Gain on sale of investments
96
Income before tax
1,309
Income tax expense
534
Net income
$775
Additional information:
During the year, $63 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $273.
Prepare a statement of cash flows using the indirect method. (If an amount reduces the account balance then enter with negative sign.)
FAIRCHILD COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2012 AND 2011
2012
2011
Cash
$1,805
$1,097
Receivables
1,753
1,301
Inventory
1,594
1,919
Plant assets
1,901
1,696
Accumulated depreciation
(1,191
)
(1,167
)
Long-term investments (held-to-maturity)
1,306
1,475
$7,168
$6,321
Accounts payable
$1,205
$794
Accrued liabilities
205
246
Bonds payable
1,410
1,637
Common stock
1,900
1,698
Retained earnings
2,448
1,946
$7,168
$6,321
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