ARCTIC COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue $946,400 Cost of Goods Sold $694,200 Wages Expense 247,000 Advertising Expense 40,300 Depreciation Expense 28,600 Interest Expense 23,400 Gain on Sale of Land (32,500) 1,001,000 Net Loss $(54,600) ARCTIC COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $63,700 $36,400 Accounts Receivable 54,600 65,000 Inventory 139,100 146,900 Prepaid Advertising 13,000 16,900 Plant Assets 468,000 288,600 Accumulated Depreciation (101,400) (72,800) Total Assets $637,000 $481,000 Liabilities and Stockholders' Equity Accounts Payable $22,100 $40,300 Interest Payable 7,800 Bonds Payable 260,000 Common Stock 318,500 318,500 Retained Earnings 67,600 122,200 Treasury Stock (39,000) Total Liabilities and Stockholders' Equity $637,000 $481,000 During 2013, Arctic sold land for $91,000 cash that had originally cost $58,500, Arctic also purchased equipment for cash, acquired treasury stock for cash, and issued bonds payable for cash. Accounts payable relate to merchandise purchases. Required a. Calculate the change in cash that occurred during 2013 b. Prepare a statement of cash flows using the indirect method. a. Change in Cash during 2013 $ b. Use a negative sign with cash outflow answers. ARTIC COMPANY Statement of Cash Flows For Year Ended December 31, 2013 Cash Flow from Operating Activities Net Loss Add (deduct) items to convert net income to cash basis Depreciation Gain on Sale of Land Accounts Receivable Inventory Prepaid Advertising Accounts Payable Interest Payable Cash Flow Used by Operating Activities Cash Flow from Investing Activities Sale of Land Purchase of Plant Assets Cash Used by Investing Activities Cash Flow from Financing Activities Issuance of Bonds Payable Purchase of Treasury Stock Cash Provided by Financing Activities Net Change in Cash Cash at Beginning of Year Cash at End of Year