1. (a.) If the company debited cost of goods sold and credited inventory for $680,000 during the year, what is the total amount of inventory purchases recorded on the debit side of the Inventory T-account and the credit side of the Accounts Payable T-account?

(b.) What is the total amount of the debits recorded in the Accounts Payable T-account during the year?

(c.) What does the amount of these debits represent?

2. (a.) What is the combined amount and direction (+ or ) of the inventory and accounts payable adjustments to net income in the operating activities section of the statement of cash flows?

(b.) What does this amount represent?

3. (a.) If the company debited income tax expense and credited income taxes payable $1,270 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account?

(b.) What does the amount of these debits represent?

4. (a.) What is the amount and direction (+ or ) of the income taxes payable adjustment to net income in the operating activities section of the statement of cash flows?

(b.) What does this adjustment represent?

5.) Would the operating activities section of the companys statement of cash flows contain an adjustment for a gain or a loss? What would be the amount and direction (+ or ) of the adjustment?

6.) What is the amount of gross cash outflows reported in the investing section of the companys statement of cash flows?

Required information [The following information applies to the questions displayed below.) Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Ending Balance $ 85,600 69,500 93,300 248,400 249,000 83,000 166,000 $ 414, 400 Beginning Balance $ 102,500 74,800 85,000 262,300 238,000 59,500 178,500 $ 440,800 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 54,400 42,300 102,000 119,000 96,700 $ 414,400 $ 96,700 54,100 85,000 102,000 103,000 $ 440,800 During the year, Ravenna paid a $10,200 cash dividend and it sold a piece of equipment for $5,100 that had originally cost $11,400 and had accumulated depreciation of $7,600. The company did not retire any bonds or repurchase any of its own common stock during the year