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	$	110,200		$	132,350
Accounts receivable		87,800			94,600
Inventory		117,900			107,500
Total current assets		315,900			334,450
Property, plant, and equipment		312,000			301,000
Less accumulated depreciation		104,000			75,250
Net property, plant, and equipment		208,000			225,750
Total assets	$	523,900		$	560,200
Accounts payable	$	68,800		$	122,200
Income taxes payable		53,400			71,500
Bonds payable		129,000			107,500
Common stock		150,500			129,000
Retained earnings		122,200			130,000
Total liabilities and stockholders equity	$	523,900		$	560,200

During the year, Ravenna paid a $12,900 cash dividend and it sold a piece of equipment for $6,450 that had originally cost $15,000 and had accumulated depreciation of $10,000. The company did not retire any bonds or repurchase any of its own common stock during the year.

1. What is the amount of the net increase or decrease in cash and cash equivalents that would be shown on the companys statement of cash flows?

Net

in cash and cash equivalents

3. How much depreciation would the company add to net income on its statement of cash flows?

5-a. What is the amount and direction (+ or ) of the accounts receivable adjustment to net income in the operating activities section of the statement of cash flows?

5-b. What does this adjustment represent?

What does this adjustment represent?

5a

What is the amount and direction (+ or ) of the accounts receivable adjustment to net income in the operating activities section of the statement of cash flows?

Amount

5b
	Cash collected from customers > Credit sales Cash collected from customers < Credit sales Cash payments > Cash collected

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?

7a

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?

7a

Amount

7b

What does this amount represent?

	Cash paid to suppliers < Cost of goods sold Cash paid to suppliers > Cost of goods sold