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 & cash equivalents	$ 93,800	$ 112,450
Accounts receivable	75,600	81,400
Inventory	101,500	92,500
Total current assets	270,900	286,350
Property, plant, and equipment	270,000	259,000
^^Less accumulated depreciation	90,000	64,750
Net property, plant, and equipment	180,000	194,250
Total assets	$ 450,900	$ 480,600
Accounts payable	$ 59,200	$ 105,200
Income taxes payable	46,000	59,900
Bonds payable	111,000	92,500
Common stock	129,500	111,000
Retained earnings	105,200	112,000
Total liabilities and stockholders equity	$ 450,900	$ 480,600

During the year, Ravenna paid a $11,100 cash dividend and it sold a piece of equipment for $5,550 that had originally cost $12,600 and had accumulated depreciation of $8,400. The company did not retire any bonds or repurchase any of its own common stock during the year.

• 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?

• 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?

*Please show work :)