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 $430,000 Wages Expense 36.000 Insurance Expense 12.000 Depreciation Expense 13.000 Interest Expense 12.000 Income Tax Expense 29.000 580,000 Net Income 563.000 WOLFF COMPANY Balance Sheets Dec 31, 2016 Dec 31, 2015 Assets Cath 552.000 SILOOD Accounts Receivable 41.000 32.000 Inventory 0000 Prepaid insurance 5.000 7000 Plant Assets 219.000 195.000 Accumulated Derection 195.000 Total 5339.000 57.000 Liabilities and Stockholders Equity Accounts Payable Wares Payable Income Tax Paya Bonds Payable Common Stock Retained Earnings Total abilities and Stockholders' Equity 37.000 2.000 6000 141.000 90.000 6.000 3120G $10.000 6.000 7.000 75.000 50.000 50.000 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 each. Bond Interest is paid sem 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 ratlo e. Compute the operating cash flow-to-capital-expenditures ratio & Chause in Cash during 2016 5 O 3 b. Use a negative sign with cash outflow answers WOLFF COMPANY Statement of Cash Flow DI UN Return to COL"se $ 0 0 0 e 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 0 0 o 0 $ 0 c. Free cash flow so