6-a. If the company debited cost of goods sold and credited inventory for $760,000 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?

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

6-c. What does the amount of these debits represent?

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?

8-a. If the company debited income tax expense and credited income taxes payable $1,420 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account?

8-b. What does the amount of these debits 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?

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 $ 97,200 Beginning Balance $ 116, 700 Cash Accounts receivable 77,600 104, 200 279, 000 276, 000 92,000 184, 000 83, 600 95, 000 Inventory Total current assets 295, 300 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment 266, 000 66,500 199, 500 $ 494, 800 $ 463, 000 Total assets $ 60, 800 47, 200 114, 000 133, 000 108, 000 $ 108, 000 Accounts payable Income taxes payable Bonds payable Common stock 62,800 95, 000 114, 000 Retained earnings 115, 000 $ 463, 000 $ 494, 800 Total liabilities and stockholders' equity During the year, Ravenna paid a $11,400 cash dividend and it sold a piece of equipment for $5,700 that had originally cost $13,200 and had accumulated depreciation of $8,800. The company did not retire any bonds or repurchase any of its own common stock during the year