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

WOLFF COMPANY Income Statement For the Year Ended December 31, 2013
Sales Revenue		$698,500
Cost of Goods Sold	$473,000
Wages Expense	94,600
Insurance Expense	8,800
Depreciation Expense	18,700
Interest Expense	9,900
Income Tax Expense	31,900	636,900
Net Income		$61,600

WOLFF COMPANY Balance Sheets
	Dec. 31, 2013	Dec. 31, 2012
Assets
Cash	$12,100	$5,500
Accounts Receivable	45,100	35,200
Inventory	99,000	66,000
Prepaid Insurance	5,500	7,700
Plant Assets	275,000	214,500
Accumulated Depreciation	(74,800)	(56,100)
Total Assets	$361,900	$272,800
Liabilities and Stockholders' Equity
Accounts Payable	$7,700	$11,000
Wages Payable	9,900	6,600
Income Tax Payable	7,700	8,800
Bonds Payable	143,000	82,500
Common Stock	99,000	99,000
Retained Earnings	94,600	64,900
Total Liabilities and Stockholders' Equity	$361,900	$272,800

Cash dividends of $31,900 were declared and paid during 2013. 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 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 $Answer

AnswerIncreaseDecrease

b. Use a negative sign with cash outflow answers.

WOLFF COMPANY Statement of Cash Flows For Year Ended December 31, 2013
Cash Flow from Operating Activities
Net Income		$Answer
Add (deduct) items to convert net income to cash basis
Depreciation		Answer
Accounts Receivable	AnswerIncreaseDecrease	Answer
Inventory	AnswerIncreaseDecrease	Answer
Prepaid Insurance	AnswerIncreaseDecrease	Answer
Accounts Payable	AnswerIncreaseDecrease	Answer
Wages Payable	AnswerIncreaseDecrease	Answer
Income Tax Payable	AnswerIncreaseDecrease	Answer
Cash Flow Provided by Operating Activities		Answer
Cash Flow from Investing Activities
Purchase of Plant Assets		Answer
Cash Used by Investing Activities		Answer
Cash Flow from Financing Activities
Issuance of Bonds Payable		Answer
Payment of Dividends		Answer
Cash Provided by Financing Activities		Answer
Net AnswerIncreaseDecrease in Cash		Answer
Cash at Beginning of Year		Answer
Cash at End of Year		$Answer

c. Free cash flow $Answer

d. Operating-cash-flow-to-current-liabilities ratio. Answer

e. Operating-cash-flow-to-capital-expenditures ratio. Answer