Data for Fairchild SA are presented in E23.11.

Fairchild SA

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2019

Sales revenue......................................................................................€6,900

Cost of goods sold...............................................................................4,700

Gross margin.......................................................................................2,200

Selling and administrative expense.....................................................930

Income from operations.....................................................................1,270

Other income and expense Gain on sale of investments...................80

Income before tax..............................................................................1,350

Income tax expense..............................................................................540

Net income..........................................................................................€ 810

Instructions

Prepare a statement of cash flows using the direct method?