Please prepare a indirect cash flow per operations, investing, finance Ravenna C

Question

Please prepare a indirect cash flow per operations, investing, finance

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: 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.

Explanation / Answer

Statement of Cash Flow Particulars Amount Total Amount Income                  3,100.00 Gain on sale of invt                (1,200.00) Depreciation                26,000.00 Decrease in AR                  4,300.00 Increase in inventory                (6,900.00) Decrease in AP             (34,900.00) Decrease in Income tax payable                (7,600.00) Cash flow from operating activities           (17,200.00) Cash flow from Investing activities Purchase of PPE             (20,000.00) Sale of PPE                  4,200.00 Cash flow from Investing activities           (15,800.00) Cash flow from Financing activities Issue of Stock                14,000.00 Issue of Bonds                14,000.00 Dividends Paid                (8,400.00) Cash flow from Financing activities             19,600.00 Opening cash and cash equivalents             82,600.00 Closing cash and cash equivalents             69,200.00

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