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 $ 105,400 $ 126,650 Accounts receivable 83,700 90,200 Inventory 112,400 102,500 Total current assets 301,500 319,350 Property, plant, and equipment 297,000 287,000 Less accumulated depreciation 99,000 71,750 Net property, plant, and equipment 198,000 215,250 Total assets $ 499,500 $ 534,600 Accounts payable $ 65,600 $ 116,500 Income taxes payable 50,900 68,600 Bonds payable 123,000 102,500 Common stock 143,500 123,000 Retained earnings 116,500 124,000 Total liabilities and stockholders equity $ 499,500 $ 534,600 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 1 value 0 36 points Required 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 check my workreferencesebook resources 2 value 0 36 points 2 What net income would the company include on its statement of cash flows check my workreferencesebook resources 3 value 0 36 points 3 How much depreciation would the company add to net income on its statement of cash flows check my workreferencesebook resources 4 value 0 36 points 4 a If the company debited Accounts Receivable and credited Sales for $1,230,000 during the year, what is the total amount of credits recorded in Accounts Receivable during the year 4 b What does the amount of these credits represent Credit sales Cash collections from customers Payment to suppliers Cash sales Total sales check my workreferencesebook resources 5 value 0 36 points 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 Cash collected from customers Credit sales Cash collected from customers Credit sales Cash payments Cash collected check my workreferencesebook resources 6 value 0 36 points 6 a If the company debited cost of goods sold and credited inventory for $820,000 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 Cash collections Purchases Sales Supplier payments check my workreferencesebook resources 7 value 0 36 points 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 Cash paid to suppliers Cost of goods sold Cash paid to suppliers Purchases Cash paid to suppliers Cost of goods sold check my workreferencesebook resources 8 value 0 36 points 8 a If the company debited income tax expense and credited income taxes payable $1,540 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 Tax refunds Taxes payable Cash paid for income taxes check my workreferencesebook resources 9 value 0 36 points 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 No taxes are payable Tax paid Income tax expenses Tax paid Income tax expenses check my workreferencesebook resources 10 value 0 36 points 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 effect of the adjustment check my workreferencesebook resources 11 value 0 36 points 11 What is the amount of net cash provided by (used in) operating activities in the companys statement of cash flows check my workreferencesebook resources 12 value 0 36 points 12 What is the amount of gross cash outflows reported in the investing section of the companys statement of cash flows check my workreferencesebook resources 13 value 0 36 points 13 What is the companys net cash provided by (used in) investing activities check my workreferencesebook resources 14 value 0 36 points 14 What is the amount of gross cash inflows reported in the financing section of the companys statement of cash flows check my workreferencesebook resources 15 value 0 36 points 15 What is the companys net cash provided by (used in) financing activities

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 29, 2024

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

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	$	105,400	$	126,650
Accounts receivable		83,700		90,200
Inventory		112,400		102,500

Total current assets		301,500		319,350

Property, plant, and equipment		297,000		287,000
Less accumulated depreciation		99,000		71,750

Net property, plant, and equipment		198,000		215,250

Total assets	$	499,500	$	534,600

Accounts payable	$	65,600	$	116,500
Income taxes payable		50,900		68,600
Bonds payable		123,000		102,500
Common stock		143,500		123,000
Retained earnings		116,500		124,000

Total liabilities and stockholders equity	$	499,500	$	534,600

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.

value: 0.36 points

Required:

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?

check my workreferencesebook & resources

value: 0.36 points

2.	What net income would the company include on its statement of cash flows?

check my workreferencesebook & resources

value: 0.36 points

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

check my workreferencesebook & resources

value: 0.36 points

4-a.	If the company debited Accounts Receivable and credited Sales for $1,230,000 during the year, what is the total amount of credits recorded in Accounts Receivable during the year?

4-b.

What does the amount of these credits represent?

	Credit sales
	Cash collections from customers
	Payment to suppliers
	Cash sales
	Total sales

check my workreferencesebook & resources

value: 0.36 points

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?

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

check my workreferencesebook & resources

value: 0.36 points

6-a.	If the company debited cost of goods sold and credited inventory for $820,000 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?

	Cash collections
	Purchases
	Sales
	Supplier payments

check my workreferencesebook & resources

value: 0.36 points

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?

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

check my workreferencesebook & resources

value: 0.36 points

8-a.	If the company debited income tax expense and credited income taxes payable $1,540 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?

	Tax refunds
	Taxes payable
	Cash paid for income taxes

check my workreferencesebook & resources

value: 0.36 points

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?

	No taxes are payable
	Tax paid > Income tax expenses
	Tax paid < Income tax expenses

check my workreferencesebook & resources

10.

value: 0.36 points

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 effect of the adjustment?