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	$	69,200	$	82,600
Accounts receivable		57,300		61,600
Inventory		76,900		70,000
Total current assets		203,400		214,200
Property, plant, and equipment		207,000		196,000
Less accumulated depreciation		69,000		49,000
Net property, plant, and equipment		138,000		147,000
Total assets	$	341,400	$	361,200
Accounts payable	$	44,800	$	79,700
Income taxes payable		34,900		42,500
Bonds payable		84,000		70,000
Common stock		98,000		84,000
Retained earnings		79,700		85,000
Total liabilities and stockholders equity	$	341,400	$	361,200

During the year, Ravenna paid a $8,400 cash dividend and it sold a piece of equipment for $4,200 that had originally cost $9,000 and had accumulated depreciation of $6,000. The company did not retire any bonds or repurchase any of its own common stock during the year.

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?

2.

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

3.

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

4-a.

If the company debited Accounts Receivable and credited Sales for $840,000 during the year, what is the total amount of credits recorded in Accounts Receivable during the year?

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?