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:

Ending Balance Beginning Balance

Cash and cash equivalents $ $80,800$ $ $96,800$

Accounts receivable $65,40070,400$

Inventory $87,80080,000$

Total current assets $234,000247,200$

Property, plant, and equipment $234,000224,000$

Less accumulated depreciation $78,00056,000$

Net property, plant, and equipment $156,000168,000$

Total assets $ $390,000$ $ $415,200$

Accounts payable $ $51,200$ $ $91,000$

Income taxes payable $39,80051,200$

Bonds payable $96,00080,000$

Common stock $112,00096,000$

Retained earnings $91,00097,000$

Total liabilities and stockholders$$ equity $ $390,000$ $ $415,200$

During the year, Ravenna paid a $$9,600$ cash dividend and sold a piece of equipment for $$4,800$ that originally cost $$10,800$ and had accumulated depreciation of $$7,200.$ The company did not retire any bonds or repurchase any of its own common stock during the year$\mathrm{.}1.$ What net change in cash and cash equivalents would be shown on the company$$s statement of cash flows?$2.$ What net income would the company include on its statement of cash flows?$3.$ How much depreciat$4-$a$.$ If the company debited Accounts Receivable and credited Sales for $$960,000$ 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?ion would the company add to net income on its statement of cash flows?$5-$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?