Question
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 | $ | 113,600 | $ | 136,600 |
Accounts receivable | 89,800 | 96,800 | ||
Inventory | 120,600 | 110,000 | ||
Total current assets | 324,000 | 343,400 | ||
Property, plant, and equipment | 318,000 | 308,000 | ||
Less accumulated depreciation | 106,000 | 77,000 | ||
Net property, plant, and equipment | 212,000 | 231,000 | ||
Total assets | $ | 536,000 | $ | 574,400 |
Accounts payable | $ | 70,400 | $ | 125,000 |
Income taxes payable | 54,600 | 74,400 | ||
Bonds payable | 132,000 | 110,000 | ||
Common stock | 154,000 | 132,000 | ||
Retained earnings | 125,000 | 133,000 | ||
Total liabilities and stockholders equity | $ | 536,000 | $ | 574,400 |
During the year, Ravenna paid a $13,200 cash dividend and it sold a piece of equipment for $6,600 that had originally cost $15,600 and had accumulated depreciation of $10,400. The company did not retire any bonds or repurchase any of its own common stock during the year. |
11. | What is the amount of net cash provided by (used in) operating activities in the companys statement of cash flows? |
12. | What is the amount of gross cash outflows reported in the investing section of the companys statement of cash flows?
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