CHINA EDUCATION INTERNATIONAL INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (16,202,446)	$ (1,898,104)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	7,346
Depreciation-discontinued operation	373,628	206,236
Amortization	60,091
Amortization-discontinued operation	188,650	126,434
Loss on disposal of furniture and equipment	53,370
Loss on abandonment of discontinued operation	11,768,686
Loss on written off intangible asset	2,350,634
Common stock issued for services	855,200	1,800,000
Changes in assets and liabilities:
Prepaid expense and other current assets	(3,337)	112,178
Assets of discontinued operation	(1,053,950)	(956,149)
Accounts payable and accrued expenses	64,168	(29,665)
Liabilities of discontinued operation	98,263	2,316,035
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES	(1,439,697)	1,676,965
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash acquired from acquistion		261,467
Decrease in cash from discontinued operation	(441,738)
Purchase of equipment and buildings improvement-discontinued operation	(232,540)	(317,325)
NET CASH USE IN INVESTING ACTIVITIES	(674,278)	(55,858)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock	244,000
Proceeds from related party advances	118,311	5,564
Proceeds from related party advances-discontinued operation	23,777	(515,783)
Proceeds from loan payable-related parties	22,820	150,000
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	408,908	(360,219)
EFFECT OF EXCHANGE RATE ON CASH	11,059	73,621
NET INCREASE IN CASH	(1,694,008)	1,334,509
CASH	1,700,821	7,083
CASH	6,813	1,341,592
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Shares issued for exchanging fixed assets	35,250
Common stock issued for Hefei Meihua School acquisition	315,000	3,750,000
Common stock issued for Lanhua School acquisition		2,880,000
Fair value of assets acquired-Hefei Meihua School		196,679
Liabilities assumed-Hefei Meihua School		53,547
Fair value of assets acquired-Lanhua School		1,897,869
Liabilities assumed-Lanhua School		$ 304,363

CHINA EDUCATION INTERNATIONAL, INC. 10-Q