The Artic Company's income statement and comparative balance sheets at December 31 of the current and previous year are shown below: ARTIC COMPANY Income Statement For the Year Ended December 31 Sales Revenue Cost of Goods Sold $430,000 Wages Expense 91,000 Insurance Expense 12,000 Depreciation Expense 13,000 15,000 29,000 590,000 $55,000 Interest Expense Income Tax Expense Net Income Assets Cash Accounts Receivable Inventory Prepaid insurance Plant Assets Accumulated Depreciation Total Assets $645,000 ARTIC COMPANY Balance Sheets Dec. 31, Dec. 31, Current Year Previous Year $41,000 41,000 90,000 5,000 219,000 (68,000) $328,000 $8,000 32.000 65.000 7,000 202,000 (55,000) $259,000 ARTIC COMPANY Balance Sheets Assets Cash Accounts Receivable 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 Earnings Total Liabilities and Stockholders' Equity Dec. 31, Dec. 31, Current Year Previous Year d. Compute the e. Compute the $41,000 41,000 90,000 5,000 219,000 (68,000) $328,000 $7,000 10,000 6,000 141,000 90,000 74,000 $328,000 $8,000 32,000 65,000 7,000 202,000 (55,000) $259,000 $10,000 6,000 7,000 87,000 90,000 59,000 $259,000 Cash dividends of $40,000 were declared and paid during the current year. Plant a 30 and December 31. Accounts payable relate to merchandise purchases. Required a. Calculate the change in cash that occurred during the current year. b. Prepare a statement of cash flows using the direct method. c. Compute free cash flow. operating-cash-flow-to-current-liabilities ratio. operating-cash-flow-to-capital-expenditures ratio. WULFF CUMPANT Statement of Cash Flows For Year Ended December 31 Cash Flow from Operating Activities Cash Received from Customers Cash Paid for Merchandise Purchased $ Cash Paid to Employees Cash Paid for Insurance Cash Paid for Interest Cash Paid for Income Taxes Cash 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 c. Compute free cash flow $ $ d. Compute the operating-cash-flow-to-current-liabilities ratio. Round answer to two decimal places. e. Compute the operating-cash-flow-to-capital-expenditures ratio. Round answer to two decimal places. Statement of Cash Flows (Direct Method) The Artic Company's income statement and comparative balance sheets at December 31 of the current and previous year are shown below: ARTIC COMPANY Income Statement For the Year Ended December 31 Sales Revenue Cost of Goods Sold $430,000 Wages Expense Insurance Expense Depreciation Expense Interest Expense. Income Tax Expense Net Income Assets Cash Accounts Receivable Inventory Prepaid Insurance Plant Assets 91,000 12,000 13,000 15,000 29,000 Accumulated Depreciation Total Assets $645,000 590,000 $55,000 ARTIC COMPANY Balance Sheets Dec. 31, Dec. 31, Current Year Previous Year $41,000 41,000 90,000 5,000 219,000 (68,000) $328,000 $8,000 32.000 65,000 7,000 202,000 (55,000) $259,000 ARTIC COMPANY Balance Sheets Assets Cash Accounts Receivable 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 Earnings Total Liabilities and Stockholders' Equity Dec. 31, Dec. 31, Current Year Previous Year d. Compute the e. Compute the $41,000 41,000 90,000 5,000 219,000 (68,000) $328,000 $7,000 10,000 6,000 141,000 90,000 74,000 $328,000 $8,000 32,000 65,000 7,000 202,000 (55,000) $259,000 $10,000 6,000 7,000 87,000 90,000 59,000 $259,000 Cash dividends of $40,000 were declared and paid during the current year. Plant a 30 and December 31. Accounts payable relate to merchandise purchases. Required a. Calculate the change in cash that occurred during the current year. b. Prepare a statement of cash flows using the direct method. c. Compute free cash flow. operating-cash-flow-to-current-liabilities ratio. operating-cash-flow-to-capital-expenditures ratio. Cash dividends of $40,000 were declared and paid during the current year. 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 the current year. D. Prepare a statement of cash flows using the direct 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 the current years b. Use a negative sign with cash outflow answers WOLFF COMPANY Statement of Cash Flows For Year Ended December 31 Cash Flow from Operating Activities Cash Received from Customers Cash Paid for Merchandise Purchased $ Cash Paid to Employees Cash Paid for insurance Cash Paid for interest Cash Paid for Income Taxes Cash Provided by Operating Activities Cash Flow from Investing Activities Purchase of Plane 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 WULFF CUMPANT Statement of Cash Flows For Year Ended December 31 Cash Flow from Operating Activities Cash Received from Customers Cash Paid for Merchandise Purchased $ Cash Paid to Employees Cash Paid for Insurance Cash Paid for Interest Cash Paid for Income Taxes Cash 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 c. Compute free cash flow $ $ d. Compute the operating-cash-flow-to-current-liabilities ratio. Round answer to two decimal places. e. Compute the operating-cash-flow-to-capital-expenditures ratio. Round answer to two decimal places.