Required

a$.$ Calculate the change in cash that occurred during $2013.$

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.

a$.$ Change in Cash during $2013$ $

b$.$ Use a negative sign with cash outflow answers.

c$.$ Free cash flow $$0$

d$.$ Operating$-$cash$-$flow$-$to$-$current$-$liabilities ratio.

Round answer to two decimal places.

$0$

e$.$ Operating$-$cash$-$flow$-$to$-$capital$-$expenditures ratio.

Round answer to two decimal places.

$0$Statement of Cash Flows $($Direct Method$)$

The Wolff Company$$s income statement and comparative balance sheets at December $31$ of $2013$ and $2012$ are shown below:

WOLFF COMPANY

Income Statement

For the Year Ended December $31,2013$

Sales Revenue $$635,000$

Cost of Goods Sold $$430,000$

Wages Expense $86,000$

Insurance Expense $8,000$

Depreciation Expense $17,000$

Interest Expense $9,000$

Income Tax Expense $29,000579,000$

Net Income $$56,000$

WOLFF COMPANY

Balance Sheets

Dec. $31,2013$ Dec. $31,2012$

Assets

Cash $$11,000$ $$5,000$

Accounts Receivable $41,00032,000$

Inventory $90,00060,000$

Prepaid Insurance $5,0007,000$

Plant Assets $250,000195,000$

Accumulated Depreciation $(68,000)(51,000)$

Total Assets $$329,000$ $$248,000$

Liabilities and Stockholders$$ Equity

Accounts Payable $$7,000$ $$10,000$

Wages Payable $9,0006,000$

Income Tax Payable $7,0008,000$

Bonds Payable $130,00075,000$

Common Stock $90,00090,000$

Retained Earnings $86,00059,000$

Total Liabilities and Stockholders$$ Equity $$329,000$ $$248,000$

Cash dividends of $$29,000$ were declared and paid during $2013.$ 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 $2013.$

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.

a$.$ Change in Cash during $2013$ $Answer $1$

$0$

Answer $2$

b$.$ Use a negative sign with cash outflow answers.

WOLFF COMPANY

Statement of Cash Flows

For Year Ended December $31,2013$

Cash Flow from Operating Activities

Cash Received from Customers Answer $3$

$0$

Cash paid for Merchandise Purchased Answer $4$

$0$

Cash Paid to Employees Answer $5$

$0$

Cash Paid as Insurance Answer $6$

$0$

Cash Paid for Interest Answer $7$

$0$

Cash Paid as Income Taxes Answer $8$

$0$

Answer $9$

$0$

Cash Provided by Operating Activities Answer $10$

$0$

Cash Flow from Investing Activities

Purchase of Plant Assets Answer $11$

$0$

Cash Flow from Financing Activities

Issuance of Bonds Payable Answer $12$

$0$

Payment of Dividends Answer $13$

$0$

Cash Provided by Financing Activities Answer $14$

$0$

Net Change in Cash Answer $15$

$0$

Cash at Beginning of Year Answer $16$

$0$

Cash at End of Year Answer $17$

$0$

c$.$ Free cash flow $Answer $18$

$0$

d$.$ Operating$-$cash$-$flow$-$to$-$current$-$liabilities ratio.

Round answer to two decimal places.

Answer $19$

$0$

e$.$ Operating$-$cash$-$flow$-$to$-$capital$-$expenditures ratio.

Round answer to two decimal places.

Answer $20$

$0$