8)

8-a. If the company debited income tax expense and credited income taxes payable $1,030 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)

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?

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: Beginning Balance Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Ending Balance $ 69,200 57,300 76,900 203,400 207,000 69,000 138,000 $ 341,400 $ 82,600 61,600 70,000 214,200 196,000 49,000 147,000 $ 361,200 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 44,800 34,900 84,000 98,000 79,700 $ 341,400 $ 79,700 42,500 70,000 84,000 85,000 $ 361,200 During the year, Ravenna paid a $8,400 cash dividend and it sold a piece of equipment for $4,200 that had originally cost $9,000 and had accumulated depreciation of $6,000. The company did not retire any bonds or repurchase any of its own common stock during the year