7. 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?

8. If the company debited income tax expense and credited income taxes payable $1,180 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account?

9. 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?

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?

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 Beginning Balance Cash Accounts receivable Inventory Total current assets Property, plant, and equipment $ 80,800 $ 96,800 70,400 80,000 247,200 224,000 56,000 168,000 390,000 $ 415,200 65,400 87,800 234,000 234,000 78,000 156,000 Less accumulated depreciation Net property, plant, and equipment Total assets Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $51,200 91,000 51,200 80,000 96,000 97,000 390,000 $415,200 39,800 96,000 112,000 91,000 Total liabilities and stockholders equity During the year, Ravenna paid a $9,600 cash dividend and it sold a piece of equipment for $4,800 that had originally cost $10,800 and had accumulated depreciation of $7,200. The company did not retire any bonds or repurchase any of its own common stock during the year