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Statement of Cash Flows (Direct Method) The Artic companys income statement and comparative balance sheets at December 31 of the current and previous year are
Statement of Cash Flows (Direct Method) The Artic companys income statement and comparative balance sheets at December 31 of the current and previous year are shown beiow: Cash dividends of $40,000 wete declared and paid during the curtent year. Plant assets were purchased for cash and bonds payable were ispued for cash Bond intereit is paid semiantiualy on june 30 and December 31, Accounts psyable relate to merchandse purchasos. Required 1. Calculate the change in cash that occurred during the current ycar: b. Prepare a statement of casti fows using the direct method. c. compute free cart fow. d. Compute the operating-cssh-flow-to-curfents yblities ratio. e compute the operatiog-cashpliowio-capitaleapendures ratio. a. change in cash during the current year 3 b. Use a negative sikn with cash outfow amwers b. Use a negative sign with rach nutflnw ancware c. Compute free cash flow d. Compute the operating-cash-flow-to-current-liabilities ratio. Round answer to two decimal places. 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
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