Question
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
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 | $ | 52,800 | $ | 62,700 | |
Accounts receivable | 45,100 | 48,400 | |||
Inventory | 60,500 | 55,000 | |||
Total current assets | 158,400 | 166,100 | |||
Property, plant, and equipment | 165,000 | 154,000 | |||
Less accumulated depreciation | 55,000 | 38,500 | |||
Net property, plant, and equipment | 110,000 | 115,500 | |||
Total assets | $ | 268,400 | $ | 281,600 | |
Accounts payable | $ | 35,200 | $ | 62,700 | |
Income taxes payable | 27,500 | 30,900 | |||
Bonds payable | 66,000 | 55,000 | |||
Common stock | 77,000 | 66,000 | |||
Retained earnings | 62,700 | 67,000 | |||
Total liabilities and stockholders equity | $ | 268,400 | $ | 281,600 | |
During the year, Ravenna paid a $6,600 cash dividend and it sold a piece of equipment for $3,300 that had originally cost $6,600 and had accumulated depreciation of $4,400. The company did not retire any bonds or repurchase any of its own common stock during the year.
14. What is the amount of gross cash inflows reported in the financing section of the companys statement of cash flows?
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