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	$	48,000	$	57,000
Accounts receivable		41,000		44,000
Inventory		55,000		50,000
Total current assets		144,000		151,000
Property, plant, and equipment		150,000		140,000
Less accumulated depreciation		50,000		35,000
Net property, plant, and equipment		100,000		105,000
Total assets	$	244,000	$	256,000
Accounts payable	$	32,000	$	57,000
Income taxes payable		25,000		28,000
Bonds payable		60,000		50,000
Common stock		70,000		60,000
Retained earnings		57,000		61,000
Total liabilities and stockholders equity	$	244,000	$	256,000

During the year, Ravenna paid a $6,000 cash dividend and it sold a piece of equipment for $3,000 that had originally cost $6,000 and had accumulated depreciation of $4,000. The company did not retire any bonds or repurchase any of its own common stock during the year.

1. If the company debited cost of goods sold and credited inventory for $400,000 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?

2. What is the total amount of the debits recorded in the Accounts Payable T-account during the year?]

3. 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?

4. If the company debited income tax expense and credited income taxes payable $700 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account?

5.

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? 6. 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? 7. What is the amount of net cash provided by (used in) operating activities in the companys statement of cash flows? 8. What is the amount of gross cash outflows reported in the investing section of the companys statement of cash flows What is the companys net cash provided by (used in) investing activities? 9. What is the amount of gross cash inflows reported in the financing section of the companys statement of cash flows? 10. What is the companys net cash provided by (used in) financing activities?