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	$	64,400	$	76,900
Accounts receivable		53,200		57,200
Inventory		71,400		65,000
Total current assets		189,000		199,100
Property, plant, and equipment		192,000		182,000
Less accumulated depreciation		64,000		45,500
Net property, plant, and equipment		128,000		136,500
Total assets	$	317,000	$	335,600
Accounts payable	$	41,600	$	74,000
Income taxes payable		32,400		39,600
Bonds payable		78,000		65,000
Common stock		91,000		78,000
Retained earnings		74,000		79,000
Total liabilities and stockholders equity	$	317,000	$	335,600

During the year, Ravenna paid a $7,800 cash dividend and it sold a piece of equipment for $3,900 that had originally cost $8,400 and had accumulated depreciation of $5,600. The company did not retire any bonds or repurchase any of its own common stock during the year.

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? Answer: Net decrease in cash and cash equivalents 12,500

4-a.	If the company debited Accounts Receivable and credited Sales for $780,000 during the year, what is the total amount of credits recorded in Accounts Receivable during the year?

6-a.	If the company debited cost of goods sold and credited inventory for $520,000 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?