The f Companys income statement and comparcaivebalance shets at December 31 of 2013 and 201 Iff 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 $635,000 Cost of Goods Sold$430,000 86,000 8,000 Depreciation Expense 17,000 9,000 Wages Expense Insurance Expense Interest Expense Income Tax Expense 2,000 579,000 $56,000 Net Income WOLFF COMPANY Balance Sheets WOLFF COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash Accounts Receivable Inventory Prepaid Insurance Plant Assets Accumulated Depreciation Total Assets $11,000 41,000 90,000 5,000 250,000 (68,000) $329,000 $5,000 32,000 60,000 7,000 195,000 (51,000) $248,000 Liabilities and Stockholders' Equity Accounts Payable Wages Payable $7,000 $10,000 9,000 6/000 Liabilities and Stockholders' Equity Accounts Payable 7,000 10,000 6,000 8,000 75,000 90,000 59,000 329,000 $248,000 Wages Payable 9,000 7,000 130,000 90,000 86,000 Income Tax Payable Bonds Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Cash dividends of $29,000 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 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 $ 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 Add (deduct) items to convert net income to cash basis Depreciation 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 Used by Investing Activities Cash Flow from Financing Activities Issuance of Bonds Payable Payment of Dividends Cash Provided by Financing Activities Net + in Cash Cash at Beginning of Year Cash at End of Year Cash Provided by Financing Activities Net +in Cash Cash at Beginning of Year Cash at End of Year c. Free cash flow$ d. Operating-cash-flow-to-current-liabilities ratio. e. Operating-cash-flow-to-capital-expenditures ratio. Save Answers Previous page
