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
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 Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Accounts payable Ending Beginning Balance $ 116,700 Balance $ 97,200 77,600 83,600 104,200 95,000 279,000 295,300 276,000 266,000 92,000 66,500 $ 463,000 184,000 199,500 $ 494,800 $ 60,800 $ 108,000 Income taxes payable 47,200 62,800 Bonds payable 114,000 95,000 Common stock 133,000 114,000 Retained earnings 108,000 115,000 Total liabilities and stockholders' equity $ 463,000 $494,800 During the year, Ravenna paid a $11,400 cash dividend and it sold a piece of equipment for $5,700 that had originally cost $13,200 and had accumulated depreciation of $8,800. The company did not retire any bonds or repurchase any of its own common stock during the year. Required: 1. What is the amount of the net increase or decrease in cash and cash equivalents that would be shown on the company's statement i of cash flows? Net in cash and cash equivalents
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