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Ravenna Company is a merchandiser using the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for

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Ravenna Company is a merchandiser using the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: During the year, Ravenna paid a $12,300 cash dividend and sold a piece of equipment for $6,150 that orig) nally cost $14,400 and had accumulated depreciation of $9,600. The company did not retire any bonds or repurchate any of its own common stock during the year. Required: 1. What net change in cash and cash equivalents would be shown on the company's 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 Recelvable and credited Sales for $1,230,000 during the year, what is the total amount of credits recorded in Accounts Recelvable during the year? 4b. What does the amount of these credits represent? 5-a. What are 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? 6 -a. If the company debited cost of goods sold and credited inventory for $820,000 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? 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? 8-a. If the company debited income tax expense and credited income taxes payable $1,540 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account? 8b. What does the amount of these debits represent? 9-a. What are 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 company's statement of cash flows contain an adjustment for a gain or a loss? What would be the amount and direction ( + or - ) of the adjustment? 11. What is the company's net cash provided by (used in) operating activities? 12. What are the gross cash outflows in the investing section of the company's statement of cash flows? 13. What is the company's net cash provided by (used in) investing activities? 14. What are the gross cash inflows in the financing section of the company's statement of cash flows? 15. What is the company's net cash provided by (used in) financing activities

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