Statement of Cash Flows (Indirect Method) The Artic Company's Income statement and comparative balance sheets at December 31 of 2019 and 2018 are shown below: ARTIC COMPANY Income Statement For the Year Ended December 31, 2019 Sales Revenue $645.000 Cost of Goods Sold $430,000 Wages Expense 91,000 Insurance Expense 12,000 Depreciation Expense 13,000 Interest Expense 15.000 Income Tax Expense 29,000 590.000 Net Income $55,000 ARTIC COMPANY Balance Sheets Dec 31, 2019 Dec 31, 2018 $41,000 S8 000 Assets Cash Accounts Recevable Inventory Prepaid Insurance 41,000 90,000 32,000 65,000 5,000 219,000 7,000 202,000 Plant Assets Accumulated Depreciation Total Assets Liabilities (68,000) $328,000 (55,000) $259,000 and $7,000 $10,000 10,000 6,000 6,000 7,000 Stockholders Equity Accounts Payable Wages Payable Income Tax Payable Bonds Payable Common Stock Retained Earnings Total Liabilities and Stockholders Equity 141,000 87,000 90,000 90,000 74,000 59,000 $328,000 $259,000 Cash dividends of $40,000 were declared and paid during 2019. Plant assets were purchased for cash and bonds payable were issued for cash. Bond Interest is paid semi-annually on June 30 and December 31. Accounts payable relate to merchandise purchases. Required a. Calculate the change in cash that occurred during 2019. b. Prepare a statement of cash flows using the Indirect method. c. Compute free cash flow. d. Compute the operating-cash-flow-to-current-llabilities ratio. e. Compute the operating-cash-flow-to-capital-expenditures ratio. a. Change in Cash during 2019 $ b. Use a negative sign with cash outflow answers. ARTIC COMPANY Statement of Cash Flows For Year Ended December 31, 2019 Cash Flow from Operating Activities Net Income Add(deduct) items to convert net income to cash basis Depreciation Accounts Receivable Inventory Prepaid Insurance Accounts Payable Wages Payable Income Tax Payable Cash Flow Provided by Operating Activities Cash Flow from Investing Activities Purchase of Plant Assets Cash Flow from Financing Activities Issuance of Bonds Payable Payment of Dividends Cash Provided by Financing Activities Net Change in Cash Cash at Beginning of Year Cash at End of Year c. Free cash flow $ d. Operating-cash-flow-to-current-llabilities ratio. Round answer to two decimal places. e. Operating-cash-flow-to-capital-expenditures ratio. Round answer to two decimal places