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.

$7-$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?