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		$819,000
Cost of Goods Sold	$488,800
Wages Expense	139,100
Depreciation Expense	26,000
Rent Expense	36,400
Income Tax Expense	40,300	730,600
Net Income		$88,400

RURAL COMPANY Balance Sheets
	Dec. 31, 2013	Dec. 31, 2012
Assets
Cash	$26,000	$48,100
Accounts Receivable	67,600	78,000
Inventory	178,100	143,000
Prepaid Rent	18,200	15,600
Plant Assets	546,000	390,000
Accumulated Depreciation	(162,500)	(136,500)
Total Assets	$518,000	$414,000
Liabilities and Stockholders' Equity
Accounts Payable	$37,700	$22,100
Wages Payable	15,600	9,100
Income Tax Payable	6,500	10,400
Common Stock	382,200	327,600
Paid-in-capital in excess of par value	93,600	75,400
Retained Earnings	137,800	93,600
Total Liabilities and Stockholders' Equity	$518,000	$414,000

Cash dividends of $44,200 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. e. Compute the operating-cash-flow-to-capital-expenditures ratio. a. Change in Cash during 2013 $Answer AnswerIncreaseDecrease

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 (deduct) items to convert net income to cash basis
Depreciation
Accounts Receivable	IncreaseDecrease
Inventory	IncreaseDecrease
Prepaid Rent	IncreaseDecrease
Accounts Payable	IncreaseDecrease
Wages Payable	IncreaseDecrease
Income Tax Payable	IncreaseDecrease
Cash Flow Provided by Operating Activities
Cash Flow from Investing Activities
Purchase of Plant Assets
Cash Flow from Financing Activities
Issuance of Common Stock
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 $Answer d. Operating-cash-flow-to-current-liabilities ratio. Round answer to two decimal places. Answer e. Operating-cash-flow-to-capital-expenditures ratio. Round answer to two decimal places. Answer