cost of goods sold must be calculated to solve. this is how the problem is presented

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 & cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Les accumulated depreciation Net property, plant, and equipment Total assets Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity Ending Balance $ 72,600 59,300 79.600 211,500 213,000 71.000 142,000 $ 353,500 $ 46,400 36,100 87,000 101,500 82,500 $ 353,500 Beginning Balance $ 86,850 63,800 72.500 223, 150 203,000 50, 750 152,250 $375,400 $ 82,500 45,400 72,500 87,000 88,000 $ 375,400 During the year, Ravenna paid a $8,700 cash dividend and it sold a piece of equipment for $4,350 that had originally cost $9,600 and had accumulated depreciation of $6,400. The company did not retire any bonds or repurchase any of its own common stock during the year. 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? 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 Beginning Balance Balance Cash & cash equivalent $. 72,600 $86,850 Accounts receivable 59,300 63.800 Inventory 79,600 72.500 Total current assets 211,500 223, 150 Property, plant, and equipment 213,000 203,000 Les accumulated depreciation 71,000 50.750 Net property, plant, and equipment 142,000 152,250 Total assets $ 353,500 $ 375,400 Accounts payable $.46,400 $ 82,500 Income taxes payable 36,100 45,400 Bonds payable 87,000 72.500 Common stock 101,500 87,000 Retained earnings 82.500 B8.000 Total liabilities and stockholders' equity $ 353,500 $375,400 During the year, Ravenna paid a $8,700 cash dividend and it sold a piece of equipment for $4,350 that had originally cost $9,600 and had accumulated depreciation of $6,400. The company did not retire any bonds or repurchase any of its own common stock during the year 8-a. If the company debited income tax expense and credited income taxes payable $1,060 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account? a hihat lace the amount of theca dahite renrocant