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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

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 $873,600
Cost of Goods Sold $640,800
Wages Expense 228,000
Advertising Expense 37,200
Depreciation Expense 26,400
Interest Expense 21,600
Gain on Sale of Land (30,000) 924,000
Net Loss $(50,400)

ARCTIC COMPANY Balance Sheets
Dec. 31, 2013 Dec. 31, 2012
Assets
Cash $48,720 $33,600
Accounts Receivable 60,480 60,000
Inventory 128,400 135,600
Prepaid Advertising 12,000 15,600
Plant Assets 432,000 266,400
Accumulated Depreciation (93,600) (67,200)
Total Assets $588,000 $444,000
Liabilities and Stockholders' Equity
Accounts Payable $20,400 $37,200
Interest Payable 7,200 -
Bonds Payable 240,000 -
Common Stock 294,000 294,000
Retained Earnings 62,400 112,800
Treasury Stock (36,000) -
Total Liabilities and Stockholders' Equity $588,000 $444,000

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 $Answer AnswerIncreaseDecrease

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 $Answer
Add (deduct) items to convert net income to cash basis
Depreciation Answer
Gain on Sale of Land Answer
Accounts Receivable AnswerIncreaseDecrease Answer
Inventory AnswerIncreaseDecrease Answer
Prepaid Advertising AnswerIncreaseDecrease Answer
Accounts Payable AnswerIncreaseDecrease Answer
Interest Payable AnswerIncreaseDecrease Answer
Cash Flow Provided by Operating Activities Answer
Cash Flow from Investing Activities
Sale of Land Answer
Purchase of Plant Assets Answer
Cash Used by Investing Activities Answer
Cash Flow from Financing Activities
Issuance of Bonds Payable Answer
Purchase of Treasury Stock Answer
Cash Provided by Financing Activities Answer
Net AnswerIncreaseDecrease in Cash Answer
Cash at Beginning of Year Answer
Cash at End of Year $Answer

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