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Problem 3

Condensed financial data of Fairchild Company for 2012 and 2011 are presented below.

)

 

 

 

 

 

 

$7,143

 

$6,291

 

	FAIRCHILD COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2012 AND 2011
	2012		2011 Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper
	Cash	$1, 80 1	$1,091
	Receivables	1,757	1,301
	Inventory	1,594	1,900
	Plant assets	1,897	1,707
	Accumulated depreciation	(1,205				)	(1,170
	Long-term investments (held-to-maturity)		1,299																				1,462
	$7,143		$6,291
	Accounts payable	$1,207	$796
	Accrued liabilities	203	245
	Bonds payable	1,418	1,631
	Common stock		1,893	1,706
	Retained earnings	2,422	1,913

FAIRCHILD COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2012

Sales

$6,851

Cost of goods sold

4,691

Gross margin

2,160

Selling and administrative expenses

930

Income from operations

1,230

Other revenues and gains

   Gain on sale of investments

82

Income before tax

1,312

Income tax expense

531

Net income

$

78

1

Additional information:
During the year, $78 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $272.
Prepare a statement of cash flows using the indirect method.
(If an amount reduces the account balance then enter with negative sign.)

$

$

$

FAIRCHILD COMPANY Statement of Cash Flows For the Year Ended December 31, 2012 (Indirect Method)
							$
Adjustments to reconcile net income to

Problem 4

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

Receivables

Inventory

Plant assets

1,893

Accumulated depreciation

)

)

Long-term investments (held-to-maturity)

1,299

 

 

 

 

 

Accounts payable

Accrued liabilities

Bonds payable

Common stock

Retained earnings

 

 

$7,137

 

$6,316

 

$1,803	$1,095
1,755	1,291
1,581	1,910
1,708
(1,194	(1,163
1,475
	$7,137		$6,316
$1,205	$789
213	235
1,411	1,649
1,898	1,692
2,410	1,951

FAIRCHILD COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2012

Sales

Cost of goods sold

Gross margin

Selling and administrative expenses

Income from operations

Other revenues and gains

   Gain on sale of investments

Income before tax

Income tax expense

Net income

$6,828
4,694
2,134
935
1,199
80
1,279
547
$732

Additional information:
During the year, $78 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 direct method.
(If an amount reduces the account balance then enter with negative sign.)

$

$

$

 

$

FAIRCHILD COMPANY Statement of Cash Flows For the Year Ended December 31, 2012 (Direct Method)

Cash at End of Period

Net Cash Provided by Financing Activities

Issuance of Common Stock for Plant Assets

78

Cash Collections from Customers

Cash Paid for Merchandise

Cash Paid for Selling/Administrative Expenses

Cash Paid for Income Taxes

Net Cash Provided by Operating Activities

Cash Flows from Investing Activities

Sale of Held-to-Maturity Investments

Purchase of Plant Assets

Net Cash Provided by Investing Activities

Cash Flows from Financing Activities

Issuance of Capital Stock

Retirement of Bonds Payable

Payment of Cash Dividends

Net Cash Provided by Financing Activities

Net Increase in Cash

Cash at Beginning of Period