S-SET A P12-1A. Statement of Cash Flows (Indirect Method) The Artic Company's income statement and com- parative balance sheets at December 31 of 2019 and 2018 are shown below: 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 Assets Cash. Accounts receivable Inventory. Prepaid insurance. Plant assets Accumulated depreciation Total assets. Liabilities and Stockholders' Equity Accounts payable....... Wages payable. Income tax payable Bonds payable Common stock. Retained earnings Total liabilities and stockholders' equity. ARTIC COMPANY Balance Sheets Dec. 31, 2019 Oldiement DI CAST JOWS Dec. 31, 2018 $ 41,000 $ 8,000 41,000 32,000 90,000 65,000 5,000 7,000 219,000 202,000 (68,000) (55,000) $328,000 $259,000 $ 7,000 $ 10,000 10,000 6,000 6,000 7,000 141,000 87,000 90,000 90,000 74,000 59,000 $328.000 $259,000 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. Compute the operating-cash-flow-to-capital-expenditures ratio. 000 Issurance of bonds payable: Payment of dividends: Other analysis: Accumulated depreciation increased by $13,000, which is the amount of depreciation expense Common stock balance did not change Retained earnings increased by $15,000, which is the difference between the net income of $55,000 and the dividends declared of $40,000