Ravenna Company is a merchandiser that uses the indirect method to prepare the o
ID: 2473839 • Letter: R
Question
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 $7,800 cash dividend and it sold a piece of equipment for $3,900 that had originally cost $8,400 and had accumulated depreciation of $5,600. 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 $780,000 during the year, what is the total amount of credits recorded in Accounts Receivable during the year?
What does the amount of these credits represent?
Cash sales
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 $520,000 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?
Supplier payments
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
Answer no. 1 to 3 will appear in cash flow only.
ask other parts sepeartely
Particulars Amount Amount Cash from operating activities Net income -5000 Add : Non Cash/operating expense Dividend paid 7800 Profit on sale -1100 Depreciation 24100 Net operating income 25800 Add : Decrease in Current Asset / increase in current liabilities Account receivable 4000 Less : Increase in Current Asset / decrease in current liabilities Inventory -6400 Accounts payable -32400 Income tax payable -7200 Cash used operating activities -16200 Cash from Investing activities Sale of equipment 3900 Purchase of machinery -18400 Cash Used Investing activities -14500 Cash from financing activities Dividend paid -7800 Bonds Payable 13000 Common Stock 13000 Cash from financing activities 18200 Net change in Cash and cash equivalents -12500 Opening cash 76900 Closing cash 64400Related Questions
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