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 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 8 a If the company debited income tax expense and credited income taxes payable $940 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account 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 Tax paid Income tax expenses No taxes are payable Tax paid Income tax expenses 11 What is the amount of net cash provided by (used in) operating activities in the companys statement of cash flows 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 direction ( or ) of the adjustment 8 b What does the amount of these debits represent Tax refunds Cash paid for income taxes Taxes payable 12 What is the amount of gross cash outflows reported in the investing section of the companys statement of cash flows 13 What is the companys net cash provided by (used in) investing activities 14 What is the amount of gross cash inflows reported in the financing section of the companys statement of cash flows 15 What is the companys net cash provided by (used in) financing activities

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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	$	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?

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

8-a.	If the company debited income tax expense and credited income taxes payable $940 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account?

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?

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

11.	What is the amount of net cash provided by (used in) operating activities in the companys statement of cash flows?

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 direction ( + or ) of the adjustment?