Statement of Cash Flows (Indirect Method) Arctic Companys 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		$(42,000)

ARCTIC COMPANY
Balance Sheet
	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash	$49,000	$28,000
Accounts receivable	42,000	50,000
Inventory	107,000	113,000
Prepaid advertising	10,000	13,000
PPE	360,000	222,000
Accumulated depreciation	(78,000)	(56,000)
Total assets	$490,000	$370,000
Liabilities and Stockholders' Equity
Accounts payable	$17,000	$31,000
Interest payable	6,000	-
Bonds payable	200,000	-
Common stock	245,000	245,000
Retained earnings	52,000	94,000
Treasury stock	(30,000)	-
Total liabilities and equity	$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. $Answer

AnswerIncrease in cashDecrease in cashNeither an increase or decrease in cash 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	Answer
Cash Paid for Merchandise Purchased	Answer
Cash Paid to Employees	Answer
Cash Paid for Advertising	Answer
Cash Paid for Interest	Answer
Net Cash Used by Operating Activities		Answer
Investing Activities
AnswerAccumulated Depreciation increaseGain on Sale of LandIssuance of Common StockLoss on Sale of LandNet incomeNet lossPurchase of Treasury StockRetained Earnings DecreaseSale of LandSale of Treasury StockN/A	Answer
Purchase of Equipment	Answer
AnswerNet Cash Provided by Operating ActivitiesNet Cash Used by Operating ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Used by Financing Activities		Answer
Financing Activities
Issuance of Bonds Payable	Answer
AnswerAccumulated Depreciation increaseGain on Sale of LandIssuance of Common StockLoss on Sale of LandNet incomeNet lossPurchase of Treasury StockRetained Earnings DecreaseSale of LandSale of Treasury StockN/A	Answer
AnswerNet Cash Provided by Operating ActivitiesNet Cash Used by Operating ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Used by Financing Activities		Answer
Net Increase in Cash		Answer
Cash at Beginning of Year		Answer
Cash at End of Year		Answer