v2.4.0.6

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$ 1,949,394	$ 1,299,922
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation	108,692	99,014
Provision for doubtful accounts (written back)	88,719	(72,201)
Amortization of intangible asset	28,118
Accounts receivables	(404,942)	(317,994)
Advances to suppliers	(9,459)	(412,188)
Prepaid expenses and other receivable	7,204	(45,473)
Inventories	14,634	470,458
Accounts payable	357	(218,272)
Accrued expense and other payable	(5,771)	125,520
Customer deposits	600	(110,139)
Income tax liabilities	46,314	113,073
Amount due to a director	(300)	294
Amount due from a director		7,314
Net cash provided by (used in) operating activities	1,823,560	939,328
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition for property, plant and equipment	(64,901)	(80,144)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from new bank loan	540,631
Repayment of other short term loan	(540,631)	(449,990)
Other short term loan		449,990
Increase in common stock		1,013
Net cash provided by financing activities		1,013
Effect of exchange rate changes on cash and cash equivalents	60,793	24,416
Net Increase in cash and cash equivalents	1,819,452	884,613
Cash and cash equivalents, beginning balance	335,493	237,917
Cash and cash equivalents, ending balance	2,154,945	1,122,530
Interest payments	466,838	326,809
Income taxes paid	$ 67,457	$ 55,995

The increase (decrease) during the reporting period of advances to suppliers.

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The aggregate expense charged against earnings to allocate the cost of intangible assets (nonphysical assets not used in production) in a systematic and rational manner to the periods expected to benefit from such assets. As a noncash expense, this element is added back to net income when calculating cash provided by or used in operations using the indirect method.

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Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation).

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The increase (decrease) during the reporting period in cash and cash equivalents. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label.

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The amount of expense recognized in the current period that reflects the allocation of the cost of tangible assets over the assets' useful lives. Includes production and non-production related depreciation.

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The effect of exchange rate changes on cash balances held in foreign currencies.

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The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net of any cash received during the current period as refunds for the overpayment of taxes.

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The increase (decrease) during the reporting period in the aggregate amount of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business.

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The increase (decrease) during the reporting period in amount due within one year (or one business cycle) from customers for the credit sale of goods and services.

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The increase (decrease) during the period in the amount due for taxes based on the reporting entity's earnings or attributable to the entity's income earning process (business presence) within a given jurisdiction.

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The increase (decrease) during the reporting period in the aggregate amount of expenses incurred but not yet paid.

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The increase (decrease) during the period in the amount of customer money held in customer accounts, including security deposits, collateral for a current or future transactions, initial payment of the cost of acquisition or for the right to enter into a contract or agreement.

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The increase (decrease) during the reporting period in receivables to be collected from other entities that could exert significant influence over the reporting entity.

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The increase (decrease) during the reporting period in the aggregate amount of obligations to be paid to the following types of related parties: a parent company and its subsidiaries; subsidiaries of a common parent; an entity and trust for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of the entities' management; an entity and its principal owners, management, or member of their immediate families; affiliates; or other parties with the ability to exert significant influence.

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The increase (decrease) during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities.

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The increase (decrease) during the reporting period in the value of prepaid expenses and other assets not separately disclosed in the statement of cash flows, for example, deferred expenses, intangible assets,or income taxes.

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The amount of cash paid for interest during the period.

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The net cash inflow or outflow from financing activity for the period.

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The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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The cash outflow associated with the acquisition of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale; includes cash outflows to pay for construction of self-constructed assets.

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China Printing & Packaging, Inc. 10-Q/A