Fairchild Company Cash Flow Statement 2012

Posted on Mar 18, 2025 in Accounting and Finance

Fairchild Company
Statement of Cash Flows
For the Year Ended December 31, 2012
(Indirect Method)
Cash Flows from Operating Activities
Net income……………………………………………………………..		$ 810
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense ($1,200 – $1,170)…………	$ 30
Gain on sale of investments……………………………	(80)
Decrease in inventory……………………………………..	300
Increase in accounts payable…………………………	400
Increase in receivables……………………………………	(450)
Decrease in accrued liabilities………………………..	(50)	150
Net cash provided by operating activities……………..		960

Cash Flows from Investing Activities
Sale of held-to-maturity investments [($1,470 – $1,300) + $80]……………………………………..	250
Purchase of plant assets [($1,900 – $1,700) – $70]..	(130)
Net cash provided by investing activities………………		120

Cash Flows from Financing Activities
Issuance of capital stock [($1,900 – $1,700) – $70]…	130
Retirement of bonds payable…………………………………..	(250)
Payment of cash dividends……………………………………..	(260)
Net cash used by financing activities……………………..		(380)

Net increase in cash……………………………………………………..		700
Cash, January 1, 2012…………………………………………………..		1,100
Cash, December 31, 2012……………………………………………..		$1,800

Noncash Investing & Financing Activities
Issuance of common stock for plant assets……….		$ 70

Fairchild Company
Statement of Cash Flows
For the Year Ended December 31, 2012
(Direct Method)
Cash Flows from Operating Activities
Cash collections from customers………………………		$6,450*
Cash paid for merchandise……………………………	$4,000**
Cash paid for selling/administrative expenses…………………………………………………….	950***
Cash paid for income taxes…………………………..	540	5,490
Net cash provided by operating activities…………..		960

Cash Flows from Investing Activities
Sale of held-to-maturity investments [($1,470 – $1,300) + $80]………………………………….	250
Purchase of plant assets [($1,900 – $1,700) – $70]	(130)
Net cash provided by investing activities…………..		120

Cash Flows from Financing Activities
Issuance of capital stock [($1,900 – $1,700) – $70]	130
Retirement of bonds payable……………………………..	(250)
Payment of cash dividends…………………………………	(260)
Net cash used by financing activities…………………		(380)

Net increase in cash……………………………………………………..		700
Cash, January 1, 2012…………………………………………………..		1,100
Cash, December 31, 2012……………………………………………..		$1,800

Noncash Investing & Financing Activities
Issuance of common stock for plant assets………		$ 70

Fairchild Company