Ravenna Company is a seller that uses the indirect method to prepare the operating activities section of its cash flow statement. This year's balance sheet is as follows:

Ending Balance Starting Balance

Cash and cash equivalents 113,600 USD 136,600 USD

Receivables 89,800 96,800

Stock 120.600 110.000

Total current assets 324,000 343,400

Property, plant and equipment 318,000 308,000

Less accumulated depreciation 106,000 77,000

Net property, plant and equipment 212,000 231,000

Total assets $536,000 $574,400

Accounts payable $70,400 $125,000

Income taxes payable 54,600 74,400

Bonds payable 132,000 110,000

Common stock 154,000 132,000

Retained earnings 125,000 133,000

Total liabilities and equity $536,000 $574,400

During the year, Ravenna paid $13,200 in cash dividends and sold a piece of equipment that originally cost $15,600 with accumulated depreciation of $10,400 for $6,600. The company did not issue any bonds or buy back its own shares during the year.

1. What is the net increase or decrease in cash and cash equivalents to be shown in the company's cash flow statement?

2. What net income does the company include in its statement of cash flows?

3. How much depreciation does the company add to net income in the statement of cash flows?

4-a. If the company debited Accounts Receivable and credited Sales during the year, what is the total credit amount recorded in Accounts Receivable during the year?

4-b. What does the amount of these loans represent?

5 a. What is the amount and direction (+ or -) of the adjustment to receivables and net profit in the operating activities section of the cash flow statement?

5-b. What does this setting represent?

6-a. If the company debited cost of goods sold and credited inventory during the year, what is the total inventory purchase amount recorded on the debit side of the Inventory T-account and the credit side of the Accounts Receivable T-account?

6-b. What is the total amount of debits posted to Accounts Receivable T-account during the year?

6-c. What does the amount of these debts represent?

7-a. What is the combined amount and direction (+ or -) of the adjustments made by the inventory and liability accounts in the operating activities section of the cash flow statement to net income?

7-b. What does this amount represent?

8-a. If the company debited $1,660 of income tax expense and credited income taxes payable during the year, what is the total amount of debts recorded in the Income Tax Payable account?

8-b. What does the amount of these debts represent?

9-a. What is the amount and direction (+ or -) of the income tax adjustment payable in the operating activities section of the cash flow statement relative to net profit?

9-b. What does this setting represent?

10. Does the operating activities section of the company's cash flow statement include an adjustment for gain or loss? What would be the amount and direction (+ or -) of the adjustment?