Please answer ALL questions. PLEASE.. Help me understand. Ravenna Company is a m

Question

Please answer ALL questions. PLEASE..

Help me understand.

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 $11,100 cash dividend and it sold a piece of equipment for $5,550 that had originally cost $12,600 and had accumulated depreciation of $8,400. The company did not retire any bonds or repurchase any of its own common stock during the year.

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?

What net income would the company include on its statement of cash flows?

How much depreciation would the company add to net income on its statement of cash flows?

If the company debited Accounts Receivable and credited Sales for $1,110,000 during the year, what is the total amount of credits recorded in Accounts Receivable during the year?

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?

If the company debited cost of goods sold and credited inventory for $740,000 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?

What is the total amount of the debits recorded in the Accounts Payable T-account during the year?

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?

If the company debited income tax expense and credited income taxes payable $1,390 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account?

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?

Would the operating activities section of the company’s statement of cash flows contain an adjustment for a gain or a loss? What would be the amount and direction ( + or ) of the adjustment?

What is the amount of net cash provided by (used in) operating activities in the company’s statement of cash flows?

What is the amount of gross cash outflows reported in the investing section of the company’s statement of cash flows?

What is the company’s net cash provided by (used in) investing activities?

What is the amount of gross cash inflows reported in the financing section of the company’s statement of cash flows?

What is the company’s net cash provided by (used in) financing activities?

Please answer ALL questions. PLEASE..

Help me understand.

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:

Explanation / Answer

We prepare cash flow satement as

1) Cash flow from operating activities Amount Net Income Calculated as Change in retained earnings Opening 112000 Less: Dividend paid 11100 Adjusted retained earnings 100900 Closing balance 105200 Less: Adjusted retained earnings 100900 4300 Adjustments in net income Add: Depreciation expense 33650 ( refer note) Add: Decrease in Accounts receivable 5800 (81400-75600) Less: Increase in inventory 9000 (92500-101500) Less : Decrease in Accounts payable 46000 (105200-59200) Less: Decrease in Income tax payable (59900-46000) 13900 Less: Profit on sale of equipment 1350 ( Refer note) Net cash flow from operating activities -26500 2) Cash flow from investing activities Add: Sale of Equipment 5550 Less: Purchase of equipment 23600 ( Refer note) Net Cash flow from investing activities -18050 3) Cash flow from financing activities Add: issue of Bonds payable (111000-92500) 18500 Add: issue of Common Stock (129500-111000) 18500 Less: Dividend paid 11100 Net Cash flow from financing activities 25900 Net Increase / decrease in cash and cash equivalent -18650 Add: Cash at beginning 112450 Cash at end 93800 Working for depreciaton expense Accumulated depreciation at end 90000 Add: Accumulated depreciation on equipment sold 8400 Total 98400 Less: Accumulated depreciation at beginning 64750 Depreciation for year 33650 Value of asset purchased Equipment at end 270000 Add: Equipment sold cost 12600 Total 282600 Less: equipment at beginning 259000 Equipment purchased 23600 Profit on sale of equipment Cosst of equipment 12600 Less: accumulated depreciation 8400 Book Value 4200 Sale price 5550 Profit on sale of equipment 1350 Using above statement you can understand and answer all your queries

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