r 12 Statement of Cash Flows RURAL COMPANY Income Statement 31, 2016 For the Year Ended $645,000 Sales revenue Cost of goods sold Wages expense Depreciation e Rent expense Income tax expense. Net income . .. .$376,000 ...107,000 22,000 28,000 31,000 564,000 S 81,000 RURAL COMPANY Balance Sheets Dec. 31, 2016 Dec. 31, 2015 Assets Cash Accounts receivable. Inventory Prepaid rent Plant assets $ 41,000 33,000 52,000 60,000 142,000 116,000 10,000 420,000 300,000 14,000 127.000 105,000 . $542,000 $414,000 Total assets Liabilities and Stockholders' Equity Accounts payable. Wages payable Income tax payable Common stock Paid-in-capital in excess of par value $ 29,000 17.000 7,000 8,000 .. 295,000 252,000 14,000 7,000 58,000 72,000 .125,000 2,000 Total liabilities and stockholders' equity . . . . . . . Cash dividends of $28,000 were declared and paid during 2016. Plant assets were purchased for casi and additional common stock was issued for cash. Accounts payable relate to merchandise Required a. Calculate the change in cash that occurred during 2016 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-flows-to-capital-expenditures ratio Statement of Cash Flows (Indirect Method) The Sweet Company's income statement ant 2B