Statement of Cash Flows (Direct Method) The Artic Company's income statement and comparative balance sheets at December 31 of 2019 and 2018 are shown below: ARTIC COMPANY Income Statement For the Year Ended December 31, 2019 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, 2019 Dec 31, 2018 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 5328,000 $259,000 Liabilities and Stockholders' Equity ARTIC COMPANY Balance Sheets Dec 31, 2019 Dec 31, 2018 Assets Cash Actice 1000 17000 1.000 41.00 10000 Son 210.000 Prane 7.000 12.000 155.000 1250000 BU 500 $10.00 Total Lies and Stockholders' Equity Account Fate WP ncome Tax Pay Bons Payati Caminen SO 57.000 10.000 2000 141,000 30.000 9400 3000 7004 07.000 0.000 Total Stockholders fouty 2.00 $250.000 Cash dividends of 540.000 were declared and said durins 2019. Plant assets were purchased for cash and bonds payable were sued for canh tond interest is old manually on June 30 and December 31 Accounts payable relate to merchandise purchases Hequired a. Calculate the change in cash that occurred during 2019 b. Prepare a statement of cash flows using the direct method c. Compute free cash flow. d. Compute the operating-cast-flow.tocurrenclabilities ratio e Compute the operating cash-flow-to-capital-expenditures ratio a. Change in Cash during 2019 $ $ b. Use a negative sign with cash outflow answers. WOLFF COMPANY Statement of Cash Flows For Year Ended December 31, 2019 Cash Flow from Operating Activities Cash Received from Customers Cash Paid for Merchandise Purchased $ Cash Paid to Employees Cash Paid for Insurance 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 Cash Provided by Financing Activities Net Change in Cash Cash at Beginning of Year Cash at End of Year $ c. Compute free cash flow $ Nel Cidlige in Cash Cash at Beginning of Year Cash at End of Year $ c. Compute free cash flow $ d. Compute the operating-cash-flow-to-current-liabilities ratio. Round answer to two decimal places. e. Compute the operating-cash-flow-to-capital-expenditures ratio. Round answer to two decimal places.