[The following information applies to the questions displayed below.] Ravenna Company is a merchandiser that uses...
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[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: 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 $ 77,400 63,400 Beginning Balance $ 92,550 68,200 85,100 225,900 228,000 76,000 152,000 $ 377,900 $ 49,600 38,600 93,000 108,500 77,500 238,250 217,000 54,250 162,750 $ 401,000 $ 88,200 48,300 77,500 93,000 88,200 94,000 $ 377,900 $ 401,000 During the year, Ravenna paid a $9,300 cash dividend and it sold a piece of equipment for $4,650 that had originally cost $10,200 and had accumulated depreciation of $6,800. The company did not retire any bonds or repurchase any of its own common stock during the year. 3. How much depreciation would the company add to net income on its statement of cash flows? 5a. What is the amount and direction (+ and -) of the accounts receivable adjustment to net income in the operating activities section of the statement of cash flows? 6b. What is the total amount of debits recorded in the accounts payable t account during the year? [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: 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 $ 77,400 63,400 Beginning Balance $ 92,550 68,200 85,100 225,900 228,000 76,000 152,000 $ 377,900 $ 49,600 38,600 93,000 108,500 77,500 238,250 217,000 54,250 162,750 $ 401,000 $ 88,200 48,300 77,500 93,000 88,200 94,000 $ 377,900 $ 401,000 During the year, Ravenna paid a $9,300 cash dividend and it sold a piece of equipment for $4,650 that had originally cost $10,200 and had accumulated depreciation of $6,800. The company did not retire any bonds or repurchase any of its own common stock during the year. 3. How much depreciation would the company add to net income on its statement of cash flows? 5a. What is the amount and direction (+ and -) of the accounts receivable adjustment to net income in the operating activities section of the statement of cash flows? 6b. What is the total amount of debits recorded in the accounts payable t account during the year?
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Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
Posted Date:
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