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 $ 105.400 $126.650 Accounts receivable 83,700 90,200 Inventory 112,400 102,500 Property, plant, and equipment 297.000 287.000 Less accumulated depreciation (99,000) (71.750) Total assets $499,500 $534,600 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $ 65.600 $ 116.500 50,900 68.600 123,000 102.500 143,500 123.000 116,500 124.000 Total liabilities and stockholders' equity $499,500 $534,600 During the va Ranair a 12 200 cach cuiriend and it cold anieren einment 0 During the year Ravenna paid a $12,300 cash dividend and it sold a piece of equipment for $6,150 that had originally cost $14,400 and had accumulated depreciation of $9,600. The company did not retire any bonds or repurchase any of its own common stock during the year. Assume that the company debited cost of goods sold and credited inventory for $820,000 during the year. Required: 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? (Input the amount as positive value.) Amount b. What does this amount represent? Cash paid to suppliers Purchases Cash pald to suppliers > Cost of goods sold