The following information applies to the questions displayed below.] Ravenna Com
ID: 2468367 • Letter: T
Question
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?
What is the total amount of the debits recorded in the Accounts Payable T-account during the year?
What does the amount of these debits represent?
7.
value:
10.00 points
Required information
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?
What does this amount represent?
8.
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?
What does the amount of these debits represent?
9.
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?
What does this adjustment represent?
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 effect of the adjustment?
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?
Explanation / Answer
Answer 6
Inventory Account
Accounts Payable Acoount
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 => $890600
Answer 6-b
The total amount of the debits recorded in the Accounts Payable T-account during the year => $945200
Answer 6-c
The amount of these debits represent Supplier Payments
Answer 7-a
The combined amount and direction of the inventory and accounts payable adjustments to net income in the operating activities section of the statement of cash flows is (-)
Answer 7-b
Cash paid to suppliers > Cost of goods sold
Answer 8-a
Incoem Tax Payable Account
The total amount of the debits recorded in the Income Taxes Payable account => $21460
Answer 8-b
the amount of these debits represent Cash paid for income taxes
Answer 9-a
The amount and direction of the income taxes payable adjustment to net income in the operating activities section of the statement of cash flows (-)
Answer 9-b
Tax paid > Income tax expenses
Answer 10
The operating activities section of the statement of cash flows would contain an adjustment related to a gain on the sale of a piece of equipment. The equipment was sold for $6600 and it had a book value at the time of its sale of $5200 (= $15000 original cost $10400 of accumulated depreciation). the company would record a $1400 gain on the sale. This amount would be subtracted from net income in the operating activities section of the statement.
Begg Balance 110000 Purchases ( bal fig) 890600 Cost Of Goods Sold 880000 Ending Balance 120600Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.