Cash Flow from Operating Activities (Indirect Method) The following information was obtained from Galena Company's comparative balance sheets:

	End of Year	Beginning of Year
Cash	$26,600	$12,600
Accounts receivable	61,600	49,000
Inventory	77,000	68,600
Prepaid rent	8,400	11,200
Long-term investments	29,400	47,600
Plant assets	210,000	148,400
Accumulated depreciation	(56,000)	(48,000)
Accounts payable	33,600	28,000
Income tax payable	5,600	8,400
Common stock	169,400	128,800
Retained earnings	148,400	127,400
Capital expenditures	18,480

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 $75,000. (a) Calculate the cash flow from operating activities using the indirect method and (b) compute Galena's operating-cash-flow-to-capital-expenditures ratio.

a. Use negative signs with cash outflow answers.

Cash Flow from Operating Activities Net Income Add (deduct) items to convert net income to cash basis Depreciation Gain on sale of investments Accounts Receivable Increase Inventory Increase Prepaid Rent Decrease Accounts payable Increase Income Tax payable Decrease Cash Provided by operating Activities b. Operating-cash-flow-to-capital-expenditures ratio (Round answer to two decimal points) 0