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 Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment. Total assets Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity Ending Balance $ 69,200 Beginning Balance $ 82,600 57,300 76,900 203,400 207,000 69,000 138,000 $ 341,400 $ 44,800 34,900 61,600 70,000 214,200 196,000 49,000 147,000 $ 361,200 $ 79,700 42,500 84,000 70,000 98,000 84,000 79,700 85,000 $ 341,400 $ 361,200 During the year, Ravenna paid a $8,400 cash dividend and it sold a piece of equipment for $4,200 that had originally cost $9,000 and had accumulated depreciation of $6,000. The company did not retire any bonds or repurchase any of its own common stock during the year. 1. What is the amount of the net increase or decrease in cash and cash equivalents that would be shown on the company's statement of cash flows? Net in cash and cash equivalents 2. What net income would the company include on its statement of cash flows? Net income 4-a. If the company debited Accounts Receivable and credited Sales for $840,000 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? 6-a. If the company debited cost of goods sold and credited inventory for $560,000 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? 9-a. What is 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 would be the amount and direction (+ or -) of the company's statement of cash flows contain an adjustment for a gain or a loss? What adjustment? 12. What is the amount of gross cash outflows reported in the investing section of the company's statement of cash flows? Gross cash outflows