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:

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Statement of Cash Flows (Indirect 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 $762,000 Cost of Goods Sold $516,000 Wages Expense 103,200 Insurance Expense 9,600 Depreciation Expense 20,400 Interest Expense 10,800 Income Tax Expense 34,800 694,800 Net Income $67,200 WOLFF COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $13,200 $6,000 Accounts Receivable 49,200 38,400 Inventory 108,000 72,000 Prepaid Insurance 6,000 8,400 Plant Assets 300,000 234,000 Accumulated Depreciation (81,600) (61,200) Total Assets $394,800 $297,600 Liabilities and Stockholders' Equity Accounts Payable $8,400 $12,000 Wages Payable 10,800 7,200 Income Tax Payable 8,400 9,600 Bonds Payable 156,000 90,000 Common Stock 108,000 108,000 Retained Earnings 103,200 70,800 Total Liabilities and Stockholders' Equity $394,800 $297,600 Cash dividends of $34,800 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 indirect 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 $ 0 $ 0 WOLFF COMPANY Statement of Cash Flows For Year Ended December 31, 2013 Cash Flow from Operating Activities Net Income Add (deduct) items to convert net income to cash basis Depreciation Accounts Receivable Inventory Prepaid Insurance Accounts Payable Wages Payable Income Tax Payable Cash Flow 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. Free cash flow $ 0 d. Operating-cash-flow-to-current-liabilities ratio. Round answer to two decimal places. e. Operating-cash-flow-to-capital-expenditures ratio. Round answer to two decimal places