Wolff Company's income statement and comparative balance sheets follow.Cash dividends of $29,000

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

Cash dividends of $29,000 were declared and paid during 2018. Also in 2018, plant assets were purchased for cash, and bonds payable were issued for cash. Bond interest is paid semiannually on June 30 and December 31. 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 Wolff's

(1) operating cash flow lo current liabilities ratio.

(2) operating cash flow to capital expenditures ratio.

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