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

Required

a$.$ Calculate the change in cash that occurred during the current year.

b$.$ Prepare a statement of cash flows using the direct 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.