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 Ending Balance $ 118,400 93,900 126, 100 338, 400 333,000 111,000 222,000 $ 560,400 Beginning Balance $ 142,300 101,200 115,000 358,500 322,000 80.500 241,500 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' quity $ 73,600 57,100 138,000 161,000 130,700 $ 560.400 $130,700 77,300 115.000 138,000 139,000 $ 600,000 During the year, Ravenna paid a $13,800 cash dividend and it sold a piece of equipment for $6,900 that had originally cost $16,200 and had accumulated depreciation of $10,800. 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 4-a. If the company debited Accounts Receivable and credited Sales for $1,350,000 during the year, what is the total amount of credits recorded in Accounts Receivable during the year? 4-5. What does the amount of these credits represent? Complete this question by entering your answers in the tabs below. Reg 4A If the company debited Accounts Receivable and credited Sales for $1,350,000 during the year, what is the total amount of credits recorded in Accounts Receivable during the year? out of or recorded Req 48 > 4-a. If the company debited Accounts Receivable and credited Sales for $1,350,000 during the year, what is the total amount of credit 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 Rec 4B What does the amount of these credits represent? Cash collections from customers Payment to suppliers Credit sales Cash sales Total sales 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. Reg 5A Req 58 What does this adjustment represent? Cash collected from customers > Credit sales Cash collected from customers Cash collected
