4 Required information [The following information applies to the questions displ

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4 Required information [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 Part 4 of 4 Beginning Balance Cash Accounts receivable Inventory Total current assets Property, plant, $ 121,800 $ 146,550 103,400 128,800 117,500 3367,450 329,000 82.250 246,750 614,200 95,900 346,500 339,000 113,000 points and equipment Less accumulated depreciation Net property, plant, and eguipment Total assets Sklpped 572,500 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $ 75,200 $ 133,500 80,200 117,500 141,000 133,5001427000 58,300 141,000 164,500 eBook Total 1iabilities and stockholders' equity $ 572,500 $ 614,200 References During the year, Ravenna paid a $14,100 cash dividend and it sold a piece of equipment for $7,050 that had originally cost $16,800 and had accumulated depreciation of $11,200. The company did not retire any bonds or repurchase any of its own common stock during the year 7-a. 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? 7-b. What does this amount represent? Complete this question by entering your answers in the tabs below Req 7A Req 7B 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? unt Req 7A Req 7B>

Explanation / Answer

7a) increase in inventory -11300 dercreae in accounts payable -58300 net affect -69600 Amount 69,600 - 7b) this adjustments represent decrese in cash inflow

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