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 Ending Balance Beginning Balance Cash $ 113,600 $ 136,600 Accounts receivable 89,800 96,800 Inventory 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 stockholders equity $ 536,000 $ 574,400 During the year, Ravenna paid a $13,200 cash dividend and it sold a piece of equipment for $6,600 that had originally cost $15,600 and had accumulated depreciation of $10,400 The company did not retire any bonds or repurchase any of its own common stock during the year If the company debited cost of goods sold and credited inventory for $880,000 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 Cash collections Supplier payments Sales Purchases 7 value 10 00 points Required information 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 Cash paid to suppliers Cost of goods sold Cash paid to suppliers Purchases Cash paid to suppliers Cost of goods sold 8 8 a If the company debited income tax expense and credited income taxes payable $1,660 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 Taxes payable Cash paid for income taxes Tax refunds 9 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 Tax paid Income tax expenses No taxes are payable Tax paid Income tax expenses 10 Would the operating activities section of the companys statement of cash flows contain an adjustment for a gain or a loss What would be the amount and effect of the adjustment

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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

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: Ending Balance Beginning Balance Cash $ 113,600 $ 136,600 Accounts receivable 89,800 96,800 Inventory 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 stockholders equity $ 536,000 $ 574,400 During the year, Ravenna paid a $13,200 cash dividend and it sold a piece of equipment for $6,600 that had originally cost $15,600 and had accumulated depreciation of $10,400. The company did not retire any bonds or repurchase any of its own common stock during the year.

If the company debited cost of goods sold and credited inventory for $880,000 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?

	Cash collections
	Supplier payments
	Sales
	Purchases

value: 10.00 points

Required information

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?

	Cash paid to suppliers < Cost of goods sold
	Cash paid to suppliers > Purchases
	Cash paid to suppliers > Cost of goods sold

8-a.	If the company debited income tax expense and credited income taxes payable $1,660 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?

	Taxes payable
	Cash paid for income taxes
	Tax refunds

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?

	Tax paid > Income tax expenses
	No taxes are payable
	Tax paid < Income tax expenses

10.	Would the operating activities section of the companys statement of cash flows contain an adjustment for a gain or a loss? What would be the amount and effect of the adjustment?