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 64,400 53,200 71,400 189,000 192,000 64,000 Beginning Balance 76,900 57,200 65,000 199, 100 182,000 45,500 136,500 335,600 128,000 $ 317,000 $ Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity 41,600 32,400 78,000 91,000 74,000 317,000 74,000 39,600 65,000 78,000 79,000 335,600 $ $ During the year, Ravenna paid a $7,800 cash dividend and it sold a piece of equipment for $3,900 that had originally cost $8,400 and had accumulated depreciation of $5,600. The company did not retire any bonds or repurchase any of its own common stock during the year. Required: 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 3. How much depreciation would the company add to net income on its statement of cash flows? Depreciation LUONTO 5,600. The company did not retire any bonds or repurchase any of its own common stock during the year. 4-a. If the company debited Accounts Receivable and credited Sales for $780,000 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? Complete this question by entering your answers in the tabs below. Req 4A Req 4B If the company debited Accounts Receivable and credited Sales for $780,000 during the year, what is the total amount of credits recorded in Accounts Receivable during the year? Amount of credits recorded Reg4 Req 4B > 4-a. If the company debited Accounts Receivable and credited Sales for $780 recorded in Accounts Receivable during the year? 4-b. What does the amount of these credits represent? Req 4B Complete this by entering your answers in the tabs below. Req 4A Req 4B What does the amount of these credits represent? Cash collections from customers Payment to suppliers Credit sales O Cash sales Total sales