Statement of Cash Flows (Indirect Method) Arctic Company's Income statement and comparative balance sheets as of December 31 of 2013 and 2012 follow: ARCTIC COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue $877.000 Cast of Goods Sold 5540,29 Wages Expense 278,000 Advertising Expense 37.200 Depreciation Expense 26.400 Interest Expense 21.600 Gain on Sale of Land (30.000) 924.000 Net LOSS $150.400) ARCTIC COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $48.720 60,460 120.400 12.000 432.000 193.600) $589,000 $33.600 60.000 135,600 15,600 266.400 167 200) $444,000 Accounts Receivable Inventory Prepaid Advertising Plant Assets Accumulated Depreciation Total Assets Liabilities and Stockholders' Equity Accounts Payable Interest Payable Bonds Payable Common Stock Retained Earnings Treasury Stock Total Liabilities and Stockholders' Equity $37.200 $20,400 7.200 240,000 204,000 62,400 (36.000) 5583.000 294.000 112.800 5-140,000 During 2013, Arctic sold land for $84,000 cash that had originally cost $54,000. Arctic also purchased equipment for cash, acquired treasury stock for cash, and issued bonds payable for cash. 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. a. Change in Cash during 2013 $ $ + b. Use a negative sign with cash outflow answers. ARTIC COMPANY Statement of Cash Flows For Year Ended December 31, 2013 Cash Flow from Operating Activities Net Loss Adid (deduct) items to corrvert net income to cash basis Depreciation Gain on Sale of Land Accounts Receivable Inventory Prepaid Advertising Accounts Payable Interest Payable Cash Flow Used by Operating Activities Cash Flow from Investing Activities Sale of Land Purchase of Plant Assets Cash Used by Investing Activities Cash Flow from Financing Activities Issuance of Bonds Payable Purchase of Treasury Stock Cash Provided by Financing Activities Net Change in Cash Cash at Beginning of Year Cash at End of Year s