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	$	126,600		$	152,250
Accounts receivable		100,000			107,800
Inventory		134,300			122,500
Total current assets		360,900			382,550
Property, plant, and equipment		354,000			343,000
Less accumulated depreciation		118,000			85,750
Net property, plant, and equipment		236,000			257,250
Total assets	$	596,900		$	639,800
Accounts payable	$	78,400		$	139,200
Income taxes payable		60,800			83,100
Bonds payable		147,000			122,500
Common stock		171,500			147,000
Retained earnings		139,200			148,000
Total liabilities and stockholders equity	$	596,900		$	639,800

During the year, Ravenna paid a $14,700 cash dividend and it sold a piece of equipment for $7,350 that had originally cost $17,400 and had accumulated depreciation of $11,600. 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 $980,000 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?

8-a. If the company debited income tax expense and credited income taxes payable $1,870 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-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?