1. What is the amount of the net increase or decrease in cash and cash equivalents that would be shown on the companys statement of cash flows?

2. What net income would the company include on its statement of cash flows?

7-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?

7-b. What does this amount represent?

9-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?

9-b. What does this adjustment represent?

10. 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?

11. What is the amount of net cash provided by (used in) operating activities in the companys statement of cash flows?

Required information The Foundational 15 (Algo) [LO15-1, LO15-2] [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: Ending Balance $ 130,000 102,000 Beginning Balance $ 156,500 Cash Accounts receivable 110,000 Inventory 137,000 125,000 Total current assets 369,000 391,500 Property, plant, and equipment 360,000 350,000 Less accumulated depreciation 120,000 87,500 Net property, plant, and equipment 240,000 262,500 Total assets $ 609,000 $ 654,000 Accounts payable $ 142,000 $ 80,000 62,000 86,000 Income taxes payable Bonds payable Common stock 150,000 125,000 175,000 150,000 Retained earnings 142,000 151,000 Total liabilities and stockholders' equity $ 609,000 $ 654,000 During the year, Ravenna paid a $15,000 cash dividend and it sold a piece of equipment for $7,500 that had originally cost $18,000 and had accumulated depreciation of $12,000. The company did not retire any bonds or repurchase any of its own common stock during the year