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 and cash equivalents	$	97,200		$	116,700
Accounts receivable		77,600			83,600
Inventory		104,200			95,000
Total current assets		279,000			295,300
Property, plant, and equipment		276,000			266,000
Less accumulated depreciation		92,000			66,500
Net property, plant, and equipment		184,000			199,500
Total assets	$	463,000		$	494,800
Accounts payable	$	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.

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?

6-a. If the company debited cost of goods sold and credited inventory for $760,000 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?

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?

8-a. If the company debited income tax expense and credited income taxes payable $1,420 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?