Statement of Cash Flows (Direct Method) The Artic Company's income statement and comparative balance sheets at December 31 of the current and previous year are shown below: ARTIC COMPANY Income Statement For the Year Ended December 31 Sales Revenue $645,000 Cost of Goods Sold $430,000 Wages Expense 91,000 Insurance Expense 12,000 Depreciation Expense 13,000 Interest Expense 15,000 Income Tax Expense 29,000 590,000 Net Income $55,000 ARTIC COMPANY Balance Sheets Dec. 31, Dec. 31, Current Year Previous Year Assets Cash $41,000 $8,000 Accounts Receivable 41,000 32,000 Inventory 90,000 65,000 Prepaid Insurance 5,000 7,000 Plant Assets 219,000 202,000 Accumulated Depreciation (68,000) (55,000) Total Assets $328,000 $259,000 Liabilities and Stockholders' Equity Accounts Payable $7,000 $10,000 Wages Payable 10,000 6,000 Income Tax Payable 6,000 7,000 Bonds Payable 141,000 87,000 Common Stock 90,000 90,000 Retained Earnings 74,000 59,000 Assets ARTIC COMPANY Balance Sheets Dec. 31, Dec. 31, Current Year Previous Year Cash $41,000 $8,000 Accounts Receivable 41,000 32,000 Inventory 90,000 55,000 Prepaid Insurance 5,000 7,000 Plant Assets 219,000 202,000 Accumulated Depreciation (68,000) (55,000) Total Assets $328,000 $259,000 Liabilities and Stockholders' Equity Accounts Payable $7,000 $10,000 Wages Payable 10,000 6,000 Income Tax Payable Bonds Payable 6,000 7,000 141,000 87,000 Common Stock 90,000 90,000 Retained Earnings 74,000 59,000 Total Liabilities and Stockholders' Equity $328,000 $259,000 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. a. Change in Cash during the current year $ 0 b. Use a negative sign with cash outflow answers. WOLFF COMPANY Statement of Cash Flows For Year Ended December 31 Cash Flow from Operating Activities Cash Received from Customers $ Cash Paid for Merchandise Purchased $ 0 Cash Paid to Employees 0 Cash Paid for Insurance 0 Cash Paid for Interest Cash Paid for Income Taxes Cash Provided by Operating Activities Cash Flow from Investing Activities Purchase of Plant Assets Cash Flow from Financing Activities Issuance of Bonds Payable Payment of Dividends 0 0 0 0 0 0 Cash Provided by Financing Activities 0 Net Change in Cash Cash at Beginning of Year 0 0 Cash at End of Year $ 0 c. Compute free cash flow $ 0 d. Compute the operating-cash-flow-to-current-liabilities ratio. Round answer to two decimal places. 0 Cash Flow from Operating Activities Cash Received from Customers S 0 Cash Paid for Merchandise Purchased $ 0 Cash Paid to Employees 0 Cash Paid for Insurance 0 Cash Paid for Interest 0 0 0 0 Cash Flow from Financing Activities Cash Paid for Income Taxes Cash Provided by Operating Activities Cash Flow from Investing Activities Purchase of Plant Assets Issuance of Bonds Payable Payment of Dividends 0 0 0 Cash Provided by Financing Activities 0 Net Change in Cash Cash at Beginning of Year Cash at End of Year 0 0 0 c. Compute free cash flow $0 d. Compute the operating-cash-flow-to-current-liabilities ratio. Round answer to two decimal places. 0 e. Compute the operating-cash-flow-to-capital-expenditures ratio. Round answer to two decimal places. 0 Please answer all parts of the question.