Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section...

 

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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: Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation. Net property, plant, and equipment Total assets Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity Ending Balance Beginning Balance $ 72,600 $ 86,850 59,300 63,800 79,600 72,500 211,500 223,150 213,000 203,000 71,000 142,000 $ 353,500 $ 46,400 36,100 50,750 152,250 $ 375,400 $ 82,500 45,400 87,000 72,500 101,500 87,000 82,500 88,000 $ 353,500 $ 375,400 During the year, Ravenna paid a $8,700 cash dividend and it sold a piece of equipment for $4,350 that had originally cost $9,600 and had accumulated depreciation of $6,400. The company did not retire any bonds or repurchase any of its own common stock during the year. 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: Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation. Net property, plant, and equipment Total assets Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity Ending Balance Beginning Balance $ 72,600 $ 86,850 59,300 63,800 79,600 72,500 211,500 223,150 213,000 203,000 71,000 142,000 $ 353,500 $ 46,400 36,100 50,750 152,250 $ 375,400 $ 82,500 45,400 87,000 72,500 101,500 87,000 82,500 88,000 $ 353,500 $ 375,400 During the year, Ravenna paid a $8,700 cash dividend and it sold a piece of equipment for $4,350 that had originally cost $9,600 and had accumulated depreciation of $6,400. The company did not retire any bonds or repurchase any of its own common stock during the year.