QUESTON 1.

QUESTION 2.

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 Balance Cash $ 69,200 Accounts receivable 57,300 Inventory 76,900 Total current assets 203,400 Property, plant, and equipment 207,000 Less accumulated depreciation 69,000 Net property, plant, and equipment 138,000 Total assets $341,400 Beginning Balance $ 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. 6-a. If the company debited cost of goods sold and credited inventory for $560,000 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 6A Req 6B Req 6C If the company debited cost of goods sold and credited inventory for $560,000 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? Show less A Purchases 552,040 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 6A Reg 6B Req 6C What is the total amount of the debits recorded in the Accounts Payable T-account during the year? Total amount of $ debits recorded 79,700 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 Balance Cash $ 69,200 Accounts receivable 57, 300 Inventory 76,900 Total current assets 203,400 Property, plant, and equipment 207,000 Less accumulated depreciation 69,000 Net property, plant, and 138,000 equipment Total assets $341,400 Beginning Balance $ 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. 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? Complete this question by entering your answers in the tabs below. Req 7A Req 7B 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? Amount Complete this question by entering your answers in the tabs below. Req 7A Req 7B What does this amount represent? O Cash paid to suppliers Cost of goods sold