Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed belowj 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 Begirming Balance $130, 000 102, 000 137, 000 369, 000 360, 000 120, 000 240, 000 $609, 000 $156, 500 110, 000 125, 000 391, 500 350, 000 87, 500 262, 500 $654, 000 Accounts receivable Inventory Total current assets Property, plant, and equient Less accurulated depreciation Net property, plant, and equient Total assets Accounts payable Income taxes payable Bonds payable Common stock Retained eamings Total liabilities and stockholders' equity $80, 000 62, 000 150, 000 175, 000 142, 000 $609, 000 $142, 000 86, 000 125, 000 150, 000 151, 000 $654, 000 During the year, Ravenna paid a $15,000 cash dividend and it sold a piece of equipment for $7,500 that had originally cost $18,000 and had accumulated depreciation of $12,000. The company did not retire any bonds or repurchase any of its own common stock during the year Required 1. 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? Net in cash and cash equivalents

Explanation / Answer

1. Net decrease in cash and cash equivalents $26500

Ending balance $130000 - Beginning balance $156500 = Net decrease $26500

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