Please answer ALL questions. PLEASE.. Help me understand. This is the 4th time i
ID: 2477892 • Letter: P
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Please answer ALL questions. PLEASE..
Help me understand. This is the 4th time i am submitting same problem. without fully explanation and unorganized answers. Please help.
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. This is the 4th time i am submitting same problem. without fully explanation and unorganized answers. Please help.
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
1. Net increase / ( decrease ) in cash and cash equivalents = Ending cash balance - Beginning cash balance = $ 93,800 - $ 112,450 = $ (18,650)
2. Net income to be reported = Ending retained earnings - Beginning retained earnings + Dividends = $ 105,200 - $ 112,000 + 11,100 = $ 4,300
3. Depreciation to be added to net income = Ending accumulated depreciation - Beginning accumulated depreciation + Accumulated depreciation on asset disposed = 90,000 - 64,750 + 8,400 = 33,650
4. Total amount of credits recorded in accounts receivable during the year = Beginning accounts receivable + Sales - Ending accounts receivable = 81,400 + 1,110,000 - 75,600 = $ 1,115,800
5. +5,800 ( Decrease in current asset to be added)
6. a. Total amount of inventory purchase = Cost of goods sold + Ending balance of inventory - Beginning balance of inventory = 740,000 + 101,500 - 92,500 = $ 749,000
6.b. The total amount of debits recorded in accounts payable = Beginning balance + inventory purchase - Ending balance = 105,200 + 749,000 - 59,200 = $ 795,000
7. Combined amount and direction of inventory and accounts payable = - $ 55,000
8.Total amount of debits in Income tax payable account = Beginning balance in income tax payable + credits during the period - Ending balance in income tax payable = 59,900 + 1,390 - 46,000 = $ 15,290
9. -$ 13,900
10. Yes, gain on sale of equipment = Sale proceeds - ( Cost - accumulated depreciation) = 5,550 - ( 12,600 -8,400) = $ 1,350. The direction would be - $ 1,350
11. Cash flows from operating activities:
Adjustments for non-cash and non-operating items:
12. Gross cash outflows in the investing operating section = Ending property plant and equipment - Beginning property plant and equipment + Cost of equipment sold = 270,000 - 259,000 + 12,600 = $ (23,600)
13. Net cash used in investing activities = Sale proceeds of equipment - Equipment purchased during the year = $ 5,550 - $ 23,600 = $ (18,050)
14. Gross cash inflows from financing activities = Increase in common + Increase in bonds payable = $ 18,500 + $ 18,500 = $ 37,000
15. Net cash provided by financing activities = Gross cash inflows from financing activities - Cash dividends paid = 37,000 - 11,100 = $ 25,900
$ $ Net income before tax 5,690Adjustments for non-cash and non-operating items:
Depreciation expense 33,650 Gain on sale of equipment (1,350) 32,300 Operating profit before working capital changes 37,990 Decrease in accounts receivable 5,800 Increase in inventory (9,000) Decrease in accounts payable (46,000) (49,200) Income tax paid (15,290) Net cash used in operating activities ( 26,500)Related Questions
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