The Artic Company's income statement and comparative balance sheets at December 31 of 2019 and 2018 are shown below:

Cash dividends of \(\$ 40,000\) were declared and paid during 2019. Plant assets were purchased for cash and bonds payable were issued for cash. Bond interest is paid semi-annually on June 30 and December 31. Accounts payable relate to merchandise purchases.

Required

a. Calculate the change in cash that occurred during 2019.

b. Prepare a statement of cash flows using the indirect method.

c. Compute free cash flow.

d. Compute the operating-cash-flow-to-current-liabilities ratio.

e. Compute the operating-cash-flow-to-capital-expenditures ratio.

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Sales revenue... Cost of goods sold Wages expense Insurance expense. Depreciation expense. Interest expense. Income tax expense Net income. ARTIC COMPANY Income Statement For the Year Ended December 31, 2019 $645,000 $430,000 91,000 12,000 13,000 15,000 29,000 590,000 $ 55,000