Required information (The following information applies to the questions displayed below.) 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: Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Ending Balance $ 80,800 65,400 87,800 234,000 234,000 78,000 156,000 $ 390,000 Beginning Balance $ 96,800 70,400 80,000 247,200 224,000 56,000 168,000 $ 415,200 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 51,200 39,800 96,000 112,000 91,000 $ 390,000 $ 91,000 51,200 80,000 96,000 97,000 $ 415, 200 During the year, Ravenna paid a $9,600 cash dividend and it sold a piece of equipment for $4,800 that had 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. 2. What net income would the company include on its statement of cash flows? Net income 3. How much depreciation would the company add to net income on its statement of cash flows? Depreciation 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? 5-b. What does this adjustment represent? Complete this question by entering your answers in the tabs below. Req 5A Req 5B 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? Amount Complete this question by entering your answers in the tabs below. Req 5A Req 5B What does this adjustment represent? Cash collected from customers > Credit sales Cash collected from customers Cash collected 6-a. If the company debited cost of goods sold and credited inventory for $640,000 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? Complete this question by entering your answers in the tabs below. Req 6A Req 6B Req 6C If the company debited cost of goods sold and credited inventory for $640,000 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? Purchases 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? Complete this question by entering your answers in the tabs below. Req 7A Req 7B 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? Amount 8-a. If the company debited income tax expense and credited income taxes payable $1,180 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account? 8-b. What does the amount of these debits represent? Complete this question by entering your answers in the tabs below. Req 8A Req 8B If the company debited income tax expense and credited income taxes payable $1,180 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account? Total amount of debits recorded