Cash Flow from Operating Activities $($Indirect Method$)$

The following information was obtained from Galena Company$$s comparative balance sheets:

$$

End

of YearBeginning

of YearCash$$19,000$$$9,000$Accounts receivable$44,00035,000$Inventory$55,00049,000$Prepaid rent$6,0008,000$Long$-$term investments$21,00034,000$Plant assets$150,000106,000$Accumulated depreciation$(40,000)(32,000)$Accounts payable$24,00020,000$Income tax payable$4,0006,000$Common stock$121,00092,000$Retained earnings$106,00091,000$Capital expenditures$13,200$

Assume that Galena Company$$s income statement showed depreciation expense of $$8,000,$ a gain on sale of investments of $$9,000,$ and a net income of $$45,000.($a$)$ Calculate the cash flow from operating activities using the indirect method and $($b$)$ compute Galena$$s operating$-$cash$-$flow$-$to$-$capital$-$expenditures ratio.

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a$.$ Use negative signs with cash outflow answers.$$

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Cash Flow from Operating ActivitiesNet IncomeAnswer $1$

Add $($deduct$)$ items to convert net income to cash basisDepreciationAnswer $2$

Gain on sale of investmentsAnswer $3$

Accounts ReceivableAnswer $4$IncreaseDecrease

Answer $5$

InventoryAnswer $6$IncreaseDecrease

Answer $7$

Prepaid RentAnswer $8$IncreaseDecrease

Answer $9$

Accounts PayableAnswer $10$IncreaseDecrease

Answer $11$

Income Tax PayableAnswer $12$IncreaseDecrease

Answer $13$

Cash Provided by Operating ActivitiesAnswer $14$

b$.$ Operating cash$-$flow$-$to capital expenditures ratio $($Round answer to two decimal points$)$ Answer $15$