a.

YOON CORPORATION
Statement Of Cash Flows
For the Year Ended December 31, 2019
Cash flows from operating activities
Net Income ₩ 160,000
Adjustments to reconcile net income
To net cash provided by operating activities :
Depreciation expense ₩ 17,000
Loss on sale of investments 7,000
Decrease in accounts receivable 5,000
Decrease in current liabilities (17,000) 12,000
Net cash provided by operating activities 172,000
Cash flows from investing activities
Sale of investments
[(₩74,000 – 52,000) – 7,000] 15,000
Purchase of equipment (58,000)
Net cash used by investing activities (43,000)
Cash flows from financing activities
Payments of cash dividends (50,000)
Net increase in cash 79,000
Net cash at beginning of year 78,000
Cash at and of year ₩157,000

b.
Free Cash Flow Analysis
Net cash provided by operating activities ₩172,000
Less: Purchase of equipment (58,000)
 Dividends (50,000)
Free cash flow ₩ 64,000
 FAIRCHILD SA
Statement Of Cash Flows
For the Year Ended December 31, 2019
(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, 2019 1,100
Cash, December 31, 2019 €1,800
Noncash investing and financing activities
Issuance of common stock for plant assets € 70
 FAIRCHILD SA
Statement of Cash Flows
For the Year Ended December 31, 2019
( Direct Method )
Cash flows from operating activities
Cash collections from customers €6,450*
Cash paid for merchandise €4,000**
Cash paid for selling/administrative
expense 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, 2019 1,100
Cash, December 31, 2019 €1,800

Noncash investing and financing activities

Issuance of common stock for plant assets € 70
 *6,900 – (1,750 – 1,300)
**4,700 – (1,900 – 1,600) – (1,200 – 800)
***(930 – 30) + (250 – 200)