Arctic Company's income statement and comparative balance sheets follow.

During 2018, Arctic sold land for $70,000 cash that had originally cost $45,000. Arctic also purchased equipment for cash, acquired treasury stock for cash, and issued bonds payable for cash in 2018. Accounts payable relate to merchandise purchases.

REQUIRED:

a. Compute the change in cash that occurred during 2018.

b. Prepare a 2018 statement of cash flows using the indirect method.

c. Compute and interpret Arctic's

(1) operating cash flow to current liabilities ratio, and

(2) operating cash flow to capital expenditures ratio.

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ARCTIC COMPANY Income Statement For Year Ended December 31, 2018 Sales.... $728,000 Cost of goods sold Wages expense Advertising expense Depreciation expense. Interest expense... Gain on sale of land $534,000 190,000 31,000 22,000 18,000 (25,000) 770,000 Net loss. $ (42,000)