Statement of Cash Flows (Indirect Method) The Wolff Company's income statement and comparative balance sheets at December 31 of 2016 and 2015 are shown below: WOLFF COMPANY Income Statement For the Year Ended December 31, 2016 Sales Revenue 5645.000 Cost of Goods Sold S430.000 Wages Expense 36.000 Insurance Expense 12.000 Deprecation Experte 13.000 Interest Expense 12.000 Income Tax Expense 20.000 580.000 Net income 563.000 WOLFF COMPANY Balance Sheets Dec 31, 2016 Dec 31, 2015 Assets Cash Accounts Receivable inventory 152.000 41000 0.000 S000 32.000 My Subscriptions A Tion 5.000 219,000 168,000) $339.000 195.000 155.000) $247.000 Plant Assets Accumulated Depreciation Total Assets Liabilities and Stockholders' Equity Accounts Payable Wages Payable Income Tax Payable Bonds Payable Common Stock Retained Earnings Total Liabilities and Stockholders Equity 57.000 9,000 5.000 141.000 90.000 86.000 $339.000 $10.000 6.000 7.000 75.000 90.000 59.000 5247.000 Cash dividends of $36,000 were declared and paid during 2016. Plant assets were purchased for cash and bonds payable were issued for cash. Bond interest is paie semi-annually on June 30 and December 31, Accounts payable relate to merchandise purchases Required a. Calculate the change in cash that occurred during 2016, 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. . Compute the operating cash flow.to.capital expenditures ratio CVO WOLFF COMPANY Income Statement For the Year Ended December 31, 2016 Sales Revenue $645,000 Cost of Goods Sold $430,000 Wages Expense 86,000 Insurance Expense 12,000 Depreciation Expense 13,000 Interest Expense 12.000 Income Tax Expense 29,000 582,000 Net Income $63,000 WOLFF COMPANY Balance Sheets Dec. 31, 2016 Dec 31, 2015 Assets Cash $52.000 $8.000 Accounts Receivable 32.000 41.000 90.000 60.000 5.000 219.000 7.000 195.000 (55.000 5247.000 168.000 5339.000 Inventory Prepaid Insurance Plant Assets Accumulated Depreciation Total Assets Liabilities and Stockholders' Equity Accounts Payable Wages Payable Income Tax Payable Bonds Payable Common Stock Retained an Torter and stockholder $2.000 $10.000 92000 6000 2000 5.000 12 000 90.00 59.000 52000 5330 $ $ 0 0 0 0 . 0 WOLFF COMPANY Statement of Cash Flows For Year Ended December 31, 2016 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 0 > 0 0 0 0 O 0 0 $ 0 c. Free cash flow $0