Q11

A) What is the amount of the net increase or decrease in cash and cash equivalents that would be shown on the company's statement of cash flows?

B) What net income would the company include on its statement of cash flows?

C) How much depreciation would the company add to net income on its statement of cash flows?

D) 1- If the company debited Accounts Receivable and credited Sales for $960,000 during the year, what is the total amount of credits recorded in Accounts Receivable during the year?

2-. What does the amount of these credits represent?

E) 1. What is the amount and direction (+ or ) of the accounts receivable adjustment to netincome in the operating activities section of the statement of cash flows?

2 What does this adjustment represent?

O 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: Ending Beginning Balance Balance Cash $ 80, 800 $ 96, 800 Accounts receivable 65,400 70, 400 Inventory 87, 800 80,000 Total current assets 234,000 247,200 Property, plant, and equipment 234,000 224,000 Less accumulated depreciation 78,000 56,000 Net property, plant, and equipment 156,000 168,000 Total assets $ 390, 000 $ 415 , 200 Accounts payable $ 51, 200 $ 91,000 Income taxes payable 39, 800 51, 200 Bonds payable 96,000 80,000 Common stock 112, 000 96,000 Retained earnings 91,000 97,000 Total liabilities and stockholders' equity $ 390,000 $ 415, 200 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