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 $ 61,000 $ 72,650 Accounts receivable 51,200 55,000 Inventory 68,700 62,500 Total current assets 180,900 190,150 Property, plant, and equipment 186,000 175,000 Less accumulated depreciation 62,000 43,750 Net property, plant, and equipment 124,000 131,250 Total assets $ 304,900 $ 321,400 Accounts payable $ 40,000 $ 71,200 Income taxes payable 31,200 36,700 Bonds payable 75,000 62,500 Common stock 87,500 75,000 Retained earnings 71,200 76,000 Total liabilities and stockholders equity $ 304,900 $ 321,400 During the year, Ravenna paid a $7,500 cash dividend and it sold a piece of equipment for $3,750 that had originally cost $7,800 and had accumulated depreciation of $5,200 The company did not retire any bonds or repurchase any of its own common stock during the year 1 value 10 00 points Required information 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 References eBook Resources Worksheet Learning Objective 14 01 Classify cash inflows and outflows as relating to operating, investing, or financing activities Difficulty 2 Medium Learning Objective 14 02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities Check my work 2 value 10 00 points Required information 2 What net income would the company include on its statement of cash flows rev 12 09 2014 QC CS 1017 References eBook Resources Worksheet Learning Objective 14 01 Classify cash inflows and outflows as relating to operating, investing, or financing activities Difficulty 2 Medium Learning Objective 14 02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities Check my work 3 value 10 00 points Required information 3 How much depreciation would the company add to net income on its statement of cash flows References eBook Resources Worksheet Learning Objective 14 01 Classify cash inflows and outflows as relating to operating, investing, or financing activities Difficulty 2 Medium Learning Objective 14 02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities Check my work 4 value 10 00 points Required information 4 a If the company debited Accounts Receivable and credited Sales for $750,000 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 Cash sales Credit sales Total sales Payment to suppliers Cash collections from customers References eBook Resources Worksheet Learning Objective 14 01 Classify cash inflows and outflows as relating to operating, investing, or financing activities Difficulty 2 Medium Learning Objective 14 02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities Check my work 5 value 10 00 points Required information 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 References eBook Resources Worksheet Learning Objective 14 01 Classify cash inflows and outflows as relating to operating, investing, or financing activities Difficulty 2 Medium Learning Objective 14 02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities Check my work 6 value 10 00 points Required information 6 a If the company debited cost of goods sold and credited inventory for $500,000 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 Sales Supplier payments Purchases References eBook Resources Worksheet Learning Objective 14 01 Classify cash inflows and outflows as relating to operating, investing, or financing activities Difficulty 2 Medium Learning Objective 14 02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities Check my work 7 value 10 00 points Required information 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 Cost of goods sold Cash paid to suppliers Purchases References eBook Resources Worksheet Learning Objective 14 01 Classify cash inflows and outflows as relating to operating, investing, or financing activities Difficulty 2 Medium Learning Objective 14 02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities Check my work 8 value 10 00 points Required information 8 a If the company debited income tax expense and credited income taxes payable $910 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 Cash paid for income taxes Tax refunds Taxes payable References eBook Resources Worksheet Learning Objective 14 01 Classify cash inflows and outflows as relating to operating, investing, or financing activities Difficulty 2 Medium Learning Objective 14 02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities Check my work 9 value 10 00 points Required information 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 References eBook Resources Worksheet Learning Objective 14 01 Classify cash inflows and outflows as relating to operating, investing, or financing activities Difficulty 2 Medium Learning Objective 14 02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities Check my work 10 value 10 00 points Required information 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 References eBook Resources Worksheet Learning Objective 14 01 Classify cash inflows and outflows as relating to operating, investing, or financing activities Difficulty 2 Medium Learning Objective 14 02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities Check my work 11 value 10 00 points Required information 11 What is the amount of net cash provided by (used in) operating activities in the companys statement of cash flows References eBook Resources Worksheet Learning Objective 14 01 Classify cash inflows and outflows as relating to operating, investing, or financing activities Difficulty 2 Medium Learning Objective 14 02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities Check my work 12 value 10 00 points Required information 12 What is the amount of gross cash outflows reported in the investing section of the companys statement of cash flows References eBook Resources Worksheet Learning Objective 14 01 Classify cash inflows and outflows as relating to operating, investing, or financing activities Difficulty 2 Medium Learning Objective 14 02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities Check my work 13 value 10 00 points Required information 13 What is the companys net cash provided by (used in) investing activities References eBook Resources Worksheet Learning Objective 14 01 Classify cash inflows and outflows as relating to operating, investing, or financing activities Difficulty 2 Medium Learning Objective 14 02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities Check my work 14 value 10 00 points Required information 14 What is the amount of gross cash inflows reported in the financing section of the companys statement of cash flows References eBook Resources Worksheet Learning Objective 14 01 Classify cash inflows and outflows as relating to operating, investing, or financing activities Difficulty 2 Medium Learning Objective 14 02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities Check my work 15 value 10 00 points Required information 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	$	61,000	$	72,650
Accounts receivable		51,200		55,000
Inventory		68,700		62,500

Total current assets		180,900		190,150

Property, plant, and equipment		186,000		175,000
Less accumulated depreciation		62,000		43,750

Net property, plant, and equipment		124,000		131,250

Total assets	$	304,900	$	321,400

Accounts payable	$	40,000	$	71,200
Income taxes payable		31,200		36,700
Bonds payable		75,000		62,500
Common stock		87,500		75,000
Retained earnings		71,200		76,000

Total liabilities and stockholders equity	$	304,900	$	321,400

During the year, Ravenna paid a $7,500 cash dividend and it sold a piece of equipment for $3,750 that had originally cost $7,800 and had accumulated depreciation of $5,200. The company did not retire any bonds or repurchase any of its own common stock during the year.

value: 10.00 points

Required information

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?

References

eBook & Resources

WorksheetLearning Objective: 14-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

Difficulty: 2 MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

Check my work

value: 10.00 points

Required information

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

rev: 12_09_2014_QC_CS-1017

References

eBook & Resources

WorksheetLearning Objective: 14-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

Difficulty: 2 MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

Check my work

value: 10.00 points

Required information

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

References

eBook & Resources

WorksheetLearning Objective: 14-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

Difficulty: 2 MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

Check my work

value: 10.00 points

Required information

4-a.	If the company debited Accounts Receivable and credited Sales for $750,000 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?

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

References

eBook & Resources

WorksheetLearning Objective: 14-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

Difficulty: 2 MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

Check my work

value: 10.00 points

Required information

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

References

eBook & Resources

WorksheetLearning Objective: 14-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

Difficulty: 2 MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

Check my work

value: 10.00 points

Required information

6-a.	If the company debited cost of goods sold and credited inventory for $500,000 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
	Sales
	Supplier payments
	Purchases

References

eBook & Resources

WorksheetLearning Objective: 14-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

Difficulty: 2 MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

Check my work

value: 10.00 points

Required information

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 > Cost of goods sold
	Cash paid to suppliers > Purchases

References

eBook & Resources

WorksheetLearning Objective: 14-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

Difficulty: 2 MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

Check my work

value: 10.00 points

Required information

8-a.	If the company debited income tax expense and credited income taxes payable $910 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?

	Cash paid for income taxes
	Tax refunds
	Taxes payable

References

eBook & Resources

WorksheetLearning Objective: 14-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

Difficulty: 2 MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

Check my work

value: 10.00 points

Required information

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

References

eBook & Resources

WorksheetLearning Objective: 14-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

Difficulty: 2 MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

Check my work

10.

value: 10.00 points

Required information

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?

References

eBook & Resources

WorksheetLearning Objective: 14-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

Difficulty: 2 MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

Check my work

11.

value: 10.00 points

Required information

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

References

eBook & Resources

WorksheetLearning Objective: 14-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

Difficulty: 2 MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

Check my work

12.

value: 10.00 points

Required information

12.	What is the amount of gross cash outflows reported in the investing section of the companys statement of cash flows?

References

eBook & Resources

WorksheetLearning Objective: 14-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

Difficulty: 2 MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

Check my work

13.

value: 10.00 points

Required information

13.	What is the companys net cash provided by (used in) investing activities?

References

eBook & Resources

WorksheetLearning Objective: 14-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

Difficulty: 2 MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

Check my work

14.

value: 10.00 points

Required information

14.	What is the amount of gross cash inflows reported in the financing section of the companys statement of cash flows?

References

eBook & Resources

WorksheetLearning Objective: 14-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

Difficulty: 2 MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

Check my work

15.

value: 10.00 points

Required information