The Rural Company's income statement and comparative balance sheets as of December 31 of 2013 and 2012 are shown below:

RURAL COMPANY Income Statement For the Year Ended December 31, 2013
Sales Revenue		$693,000
Cost of Goods Sold	$413,600
Wages Expense	117,700
Depreciation Expense	22,000
Rent Expense	30,800
Income Tax Expense	34,100	618,200
Net Income		$74,800

RURAL COMPANY Balance Sheets
	Dec. 31, 2013	Dec. 31, 2012
Assets
Cash	$22,000	$40,700
Accounts Receivable	57,200	66,000
Inventory	150,700	121,000
Prepaid Rent	15,400	13,200
Plant Assets	462,000	330,000
Accumulated Depreciation	(137,500)	(115,500)
Total Assets	$518,000	$414,000
Liabilities and Stockholders' Equity
Accounts Payable	$31,900	$18,700
Wages Payable	13,200	7,700
Income Tax Payable	5,500	8,800
Common Stock	323,400	277,200
Paid-in-capital in excess of par value	79,200	63,800
Retained Earnings	116,600	79,200
Total Liabilities and Stockholders' Equity	$518,000	$414,000

Cash dividends of $37,400 were declared and paid during 2013. Plant assets were purchased for cash and additional common stock was issued for cash. 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. e. Compute the operating-cash-flow-to-capital-expenditures ratio. a. Change in Cash during 2013 $Answer AnswerIncreaseDecrease

b. Use a negative sign with cash outflow answers.

RURAL 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 Rent	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 Flow from Financing Activities
Issuance of Common Stock		Answer
Payment of Dividends		Answer
Cash Provided by Financing Activities		Answer
Net Change 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. Round answer to two decimal places. Answer e. Operating-cash-flow-to-capital-expenditures ratio. Round answer to two decimal places. Answer