Company is 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		Beginning Balance
Cash	$	89,000	$	106,750
Accounts receivable		71,500		77,000
Inventory		96,000		87,500
Total current assets		256,500		271,250
Property, plant, and equipment		255,000		245,000
Less accumulated depreciation		85,000		61,250
Net property, plant, and equipment		170,000		183,750
Total assets	$	426,500	$	455,000
Accounts payable	$	56,000	$	99,500
Income taxes payable		43,500		57,000
Bonds payable		105,000		87,500
Common stock		122,500		105,000
Retained earnings		99,500		106,000
Total liabilities and stockholders equity	$	426,500	$	455,000

During the year, Ravenna paid a $10,500 cash dividend and it sold a piece of equipment for $5,250 that had originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or repurchase any of its own common stock during the year.

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?
	Amount_________________ increase or decrease???

B)

What does this amount represent?

	? Cash paid to suppliers > Cost of goods sold
	? Cash paid to suppliers < Cost of goods sold
	? Cash paid to suppliers > Purchases

C)	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?
	Amount_________________ increase or decrease???

D)

What does this adjustment represent?

Gross cash flows__________??

e.	What is the amount of gross cash inflows reported in the financing section of the companys statement of cash flows?