E23-11

Fairchild Company
Statement of Cash Flow
For The Year Ended December 31, 2015
Cash Flow from Operating Activities
Net Income 810
Adjustment to reconcile to net income
Increase in depreciation expense 30
Increase in account receivable -450
Gain on sale investment -80
Increase in account payable 400
Decrease in acrued liabilites -50
Decrease in inventory 300 150
Net Cash provided from operating activities 960

Cash Flow from Investing Activities

Increase in plant asset -130
Sale Investment 250
Net cash provided from Investing activies 120

Cash flow from Financing activities

Issuance Share Capital 130
Increase in bond payable -250
Payment Cash Devidend -260
Net cash provided from financing activities -380

Net increase 700

Cash, January 1, 2015 1100
Cash, December 31, 2015 1800
P23-1
SULLIVAN CORP.
Statement of Cash Flows
For The Year Ended December 31, 2015
Cash flows from operating activities
Net Income 370,000
Adjustments to reconcile net income
Depreciation 147,000
Gain on sale of equipment - 2,000
Equity in earnings of Myer's Co - 35,000
Decrease in accounts receivable 40,000
Increase in inventory - 135,000
Increase in accounts payable 60,000
Decrease in income taxes payable - 20,000 55,000
Net cash provided by operating activities 425,000

Cash flows from investing activities :

Proceeds from sale of equipment 40,000
Loan to TLC Co - 300,000
Principal payment of loan receivable 50,000
Net cash provided by investing activities - 210,000

Cash flows from financing activities

Dividends paid - 100,000
Net cash provided by financing activities - 100,000

Net increase in cash 115,000

Cash, January 1, 2015 700,000
Cash, December 31, 2015 815,000