Statement of Cash Flows (Indirect Method) The Rural Company's income statement and comparative balance sheets as of December 31 of 2013 and 2012 are shown below:

RURAL COMPANY Income Statement For the Year Ended December 31, 2013
Sales Revenue		$882,000
Cost of Goods Sold	$526,400
Wages Expense	149,800
Depreciation Expense	28,000
Rent Expense	39,200
Income Tax Expense	43,400	786,800
Net Income		$95,200

RURAL COMPANY Balance Sheets
	Dec. 31, 2013	Dec. 31, 2012
Assets
Cash	$28,000	$51,800
Accounts Receivable	72,800	84,000
Inventory	191,800	154,000
Prepaid Rent	19,600	16,800
Plant Assets	588,000	420,000
Accumulated Depreciation	(175,000)	(147,000)
Total Assets	$518,000	$414,000
Liabilities and Stockholders' Equity
Accounts Payable	$40,600	$23,800
Wages Payable	16,800	9,800
Income Tax Payable	7,000	11,200
Common Stock	411,600	352,800
Paid-in-capital in excess of par value	100,800	81,200
Retained Earnings	148,400	100,800
Total Liabilities and Stockholders' Equity	$518,000	$414,000

Cash dividends of $47,600 were declared and paid during 2013. Plant assets were purchased for cash and additional common stock was issued 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. c. Compute free cash flow. d. Compute the operating-cash-flow-to-current-liabilities ratio. Round to 2 decimal points e. Compute the operating-cash-flow-to-capital-expenditures ratio. Round to 2 decimal points

a. Change in Cash during 2013 s 0 X Decrease b. Use a negative sign with cash outflow answers. RURAL COMPANY Statement of Cash Flows For Year Ended December 31, 2013 Cash Flow from operating Activities Net Income Add (deducI) items lo conver net income to cash basis Depreciation Decrease nts Receivable nventory Prepaid Rent nts Payable Increase T Wages Payable Income Tax Payable Cash Flow Provided by Operating Activities Cash Flow from Investing Activities Purchase of Plant Assets Cash used by Investing Activities Cash Flow from Financing Acti Issuance of common suack Payment or Dividends Cash Provided by Financing Acti Net Decrease n Cash Cash at Beginning of Year Cash at End of Year c. Free cash flow s 0 d. Operating-cash-flow-to-current-liabilities ratio 0 e. Operating cash-flow-to-capital-expenditures ratio. 0