29. Operating Activities Section Using the Indirect Method and Cash Ratios. The following data are for Cascade Company December 31 2017 2016 Current assets Cash Accounts receivable Merchandise inventory Prepaid expenses Current liabilities Accounts payable Income tax payable S 80,000 18,000 15,500 4.200 $ 65,000 16,000 20,000 3,500 35.400 1.400 36,600 1.900 Other Data for the Year Ended December 31, 2017 Net income Depreciation expense Loss on sale of equipment Capital expenditures 540,000 6.000 3,200 28.000 From Income statement From accounting records Required: a. Using the indirect method, prepare the operating activities section of the statement of cash flows for Cascade Company for the year ended December 31, 2017. Use the format presented in Figure 125 b. Calculate the following cash measures: 1. Operating cash flow ratio 2. Capital expenditure ratio 3. Free cash flow Hot