Statement of Cash Flows (Direct Method) The Wolff Company's income statement and comparative balance sheets at December

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Statement of Cash Flows (Direct Method) The Wolff Company'sincome statement and comparative balance sheets at December 31 of2013 and 2012 are shown below: WOLFF COMPANY Income Statement Forthe Year Ended December 31, 2013 Sales Revenue $889,000 Cost ofGoods Sold $602,000 Wages Expense 120,400 Insurance Expense 11,200Depreciation Expense 23,800 Interest Expense 12,600 Income TaxExpense 40,600 810,600 Net Income $78,400 WOLFF COMPANY BalanceSheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $15,400 $7,000Accounts Receivable 57,400 44,800 Inventory 126,000 84,000 PrepaidInsurance 7,000 9,800 Plant Assets 350,000 273,000 AccumulatedDepreciation (95,200) (71,400) Total Assets $460,600 $347,200Liabilities and Stockholders' Equity Accounts Payable $9,800$14,000 Wages Payable 12,600 8,400 Income Tax Payable 9,800 11,200Bonds Payable 182,000 105,000 Common Stock 126,000 126,000 RetainedEarnings 120,400 82,600 Total Liabilities and Stockholders' Equity$460,600 $347,200 Cash dividends of $40,600 were declared and paidduring 2013. Plant assets were purchased for cash and bonds payablewere issued for cash. Bond interest is paid semi-annually on June30 and December 31. Accounts payable relate to merchandisepurchases. Required a. Calculate the change in cash that occurredduring 2013. b. Prepare a statement of cash flows using the directmethod. c. Compute free cash flow. d. Compute theoperating-cash-flow-to-current-liabilities ratio. e. Compute theoperating-cash-flow-to-capital-expenditures ratio. a. Change inCash during 2013 $Answer 0 Answer b. Use a negative sign with cashoutflow answers. WOLFF COMPANY Statement of Cash Flows For YearEnded December 31, 2013 Cash Flow from Operating Activities CashReceived from Customers Answer 0 Cash paid for MerchandisePurchased Answer 0 Cash Paid to Employees Answer 0 Cash Paid asInsurance Answer 0 Cash Paid for Interest Answer 0 Cash Paid asIncome Taxes Answer 0 Answer 0 Cash Provided by OperatingActivities Answer 0 Cash Flow from Investing Activities Purchase ofPlant Assets Answer 0 Cash Flow from Financing Activities Issuanceof Bonds Payable Answer 0 Payment of Dividends Answer 0 CashProvided by Financing Activities Answer 0 Net Change in Cash Answer0 Cash at Beginning of Year Answer 0 Cash at End of Year Answer 0c. Free cash flow $Answer 0 d.Operating-cash-flow-to-current-liabilities ratio. Round answer totwo decimal places. Answer 0 e.Operating-cash-flow-to-capital-expenditures ratio. Round answer totwo decimal places. Answer 0