Statement of Cash Flows (Indirect Method) Arctic Company's income statement and comparative balance sheets follow. ARCTIC COMPANY Income Statement For Year Ended December 31, 2019 Sales $728.000 Cost of goods sold $534.000 Wages expense 190.000 Advertising expense 31,000 Depreciation expense 22.000 Interest expense 18.000 Gain on sale of land ( (25,000) 770,000 Net loss S[42,000) ARCTIC COMPANY Balance Sheet Dec. 31, 2019 Dec 31, 2018 $49,000 $28.000 50,000 113,000 13,000 42,000 107,000 10,000 360,000 (78,000) $490.000 222,000 156,000) $370,000 $ Assets Cash Accounts receivable Inventory Prepaid advertising PPC Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Interest payable Bonds payable Common stock Retained earnings Treasury Stock Total liabilities and equity $31.000 $17.000 6,000 200,000 245.000 245,000 94,000 52,000 (30,000) $490,000 $370,000 During 2019, Arctic sold land for $70,000 cash that had originally cost $45,000. Arctic also purchased equipment for cash, acquired treasury stock for cash, and issued bonds payable for cash in 2019. Accounts payable relate to merchandise purchases. Required a. Compute the change in cash that occurred during 2019. Note: Do not use a negative sign with your answer. S . b. Prepare a 2019 statement of cash flows using the direct method. Note: Use a negative sign to indicate a cash outflow. Arctic Company Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities Cash Received from Customers $ Cash Paid for Merchandise Purchased Cash Paid to Employees Cash Paid for Advertising Cash Paid for Interest Nel Cash Used by Operating Activities Investing Activities $ Purchase of Equipment 4 Financing Activities Issuance of Bonds Payable Net Increase in Cash Cash at Beginning of Year Cash at End of Year