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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

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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 Oecember 3f, 2013 Sales Revenue Cost of Goods Sold $747,600 Wages Expense Advertising Expense 43,400 Depreciation Expense 30,800 Interest Expense Gain on Sale of Land (35,000) 1,078,000 $1,019,200 266,000 25,200 $158,800) Net Loss ARCTIC COMPANY Balance Sheets Dec. 31, 20 13 Dec. 31, 2012 Assets Cash Accounts Receivable Inventory Prepaid Advertising Planc Assets $68,600 $39,200 70,000 149800 158200 18,200 504,000 310,800 (109,200) (78,400) $686,000 $518,000 58,800 14,000 Total Assets Liabilities and Stockholders' Equity Accounts Payable Interest Payable Bonds Payable Common Stock $73.800 8,400 280,000 343,000 72,800 $43,4DD 343,000 Retained Earnings 131.600 ARCTIC COMPANY Balance Sheets Dec. 31, 2013 Dec. 31,2012 Treasury Stock (42,000) Total Liabilities and Stockholders' Equity rotal Liabilitdies and Stockholders' Equity $686000 $518,000 During 2013, Arctic sold land for $98,000 cash that had originally cost $63,000. 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 cluring 2013. b. Prepare a statement of cash flows using the indirect method. a. Change in Cash during 2013 $ b. Use a negatve sign with cash outflow answers. ARTIC COMPANY Statement of Cash Flows For Year Ended December 31, 2013 Cash Flow from Operating Activities Net Loss Add (deduct) items to convert net income to cash basis Depreciation Gain on Sale of Land Accounts Receivable Inventory Prepaid Advertising Accounts Payable Interest Payable Cash Flow Provided by Operating Activities Cash Flow from Investing Activities Sale of Land ARTIC COMPANY Statement of Cash Flows For Year Ended December 31, 2013 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 in Cash Cash at Beginning of Year Cash at End of Year

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