Assignment

Ex 1:

Preparing a Statement of Cash Flows (Indirect Method) Wolff Company's income statement and comparative balance sheets follow.

Cash dividends of $29,000 were declared and paid during 2016. Also in 2016, 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 2016. 

b. Prepare a 2016 statement of cash flows using the indirect method. 

c. Compute and interpret Wolff's

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

(2) operating cash flow to capital expenditures ratio.

assignment