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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 2009Cash $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 $6,300Accounts 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 $6,300FAIRCHILD COMPANY Income Statement For the year ended December 31, 2010Sales $6,900 Cost of goods sold 4,700Gross margin 2,200 Selling and administrative expense 930Income from operations 1,270 Gain on sales of investments 80Income before tax 1,350 Income tax expense 540Net 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. InstructionsComplete the statement of cash flows using the indirect method.
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