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 | Beginning Balance | ||||
Cash and cash equivalents | $ | 102,000 | $ | 122,400 | |
Accounts receivable | 81,700 | 88,000 | |||
Inventory | 109,700 | 100,000 | |||
Total current assets | 293,400 | 310,400 | |||
Property, plant, and equipment | 291,000 | 280,000 | |||
Less accumulated depreciation | 97,000 | 70,000 | |||
Net property, plant, and equipment | 194,000 | 210,000 | |||
Total assets | $ | 487,400 | $ | 520,400 | |
Accounts payable | $ | 64,000 | $ | 113,700 | |
Income taxes payable | 49,700 | 65,700 | |||
Bonds payable | 120,000 | 100,000 | |||
Common stock | 140,000 | 120,000 | |||
Retained earnings | 113,700 | 121,000 | |||
Total liabilities and stockholders’ equity | $ | 487,400 | $ | 520,400 | |
During the year, Ravenna paid a $12,000 cash dividend and it sold a piece of equipment for $6,000 that had originally cost $13,800 and had accumulated depreciation of $9,200. The company did not retire any bonds or repurchase any of its own common stock during the year.
6-a. If the company debited cost of goods sold and credited inventory for $800,000 during the year, what is the total amount of inventory purchases recorded on the debit side of the Inventory T-account and the credit side of the Accounts Payable T-account?
6-b. What is the total amount of the debits recorded in the Accounts Payable T-account during the year?
6-c. What does the amount of these debits represent?
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?
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section...
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 Beginning Balance Cash and cash equivalents $ 102,000 $ 122,400 Accounts receivable 81,700 88,000 Inventory 109,700 100,000 Total current assets 293,400 310,400 Property, plant, and equipment 291,000 280,000 Less accumulated depreciation 97,000 70,000 Net property, plant, and equipment 194,000 210,000 Total assets $ 487,400 $ 520,400 Accounts...
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 Beginning Balance Cash and cash equivalents $ 102,000 $ 122,400 Accounts receivable 81,700 88,000 Inventory 109,700 100,000 Total current assets 293,400 310,400 Property, plant, and equipment 291,000 280,000 Less accumulated depreciation 97,000 70,000 Net property, plant, and equipment 194,000 210,000 Total assets $ 487,400 $ 520,400 Accounts...
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 Beginning Balance Cash and cash equivalents $ 102,000 $ 122,400 Accounts receivable 81,700 88,000 Inventory 109,700 100,000 Total current assets 293,400 310,400 Property, plant, and equipment 291,000 280,000 Less accumulated depreciation 97,000 70,000 Net property, plant, and equipment 194,000 210,000 Total assets $ 487,400 $ 520,400 Accounts...
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 Beginning Balance Cash and cash equivalents $ 102,000 $ 122,400 Accounts receivable 81,700 88,000 Inventory 109,700 100,000 Total current assets 293,400 310,400 Property, plant, and equipment 291,000 280,000 Less accumulated depreciation 97,000 70,000 Net property, plant,...
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 Beginning Balance Cash $ 48,000 $ 57,000 Accounts receivable 41,000 44,000 Inventory 55,000 50,000 Total current assets 144,000 151,000 Property, plant, and equipment 150,000 140,000 Less accumulated depreciation 50,000 35,000 Net property, plant, and equipment 100,000 105,000 Total assets $ 244,000 $ 256,000 Accounts payable $ 32,000...
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 Beginning Balance Cash $ 52,800 $ 62,700 Accounts receivable 45,100 48,400 Inventory 60,500 55,000 Total current assets 158,400 166,100 Property, plant, and equipment 165,000 154,000 Less accumulated depreciation 55,000 38,500 Net property, plant, and equipment 110,000 115,500 Total assets $ 268,400 $ 281,600 Accounts payable $ 35,200...
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 and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Ending Balance $ 61,000 51,200 68,700 180,900 186,000 62,000 124,000 $ 304,900 Beginning Balance $ 72,650 55,000 62,500 190, 150 175,000 43,750 131,250 $ 321,400...
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 Beginning Balance Cash and cash equivalents $ 56,200 $ 66,950 Accounts receivable 47,100 50,600 Inventory 63,200 57,500 Total current assets 166,500 175,050 Property, plant, and equipment 171,000 161,000 Less accumulated depreciation 57,000 40,250 Net property, plant, and equipment 114,000 120,750 Total assets $ 280,500 $ 295,800 Accounts...
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 Beginning Balance Balance Cash $ 110,200 $ 132,350 Accounts receivable 87,800 94,600 Inventory 117,900 107,500 Total current assets 315,900 334,450 Property, plant, and equipment 312,000 301,000 Less accumulated depreciation 104,000 75,250 Net property, plant, and equipment 208,000 225,750 Total assets $ 523,900 $ 560,200 Accounts payable Income taxep...
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 Ending Balance $ 110,200 87,800 117,900 315,900 312,000 104,000 208,000 $ 523,900 Beginning Balance $ 132,350 94,600 107,500 334,450 301,000 75,250 225,750 $ 560,200 Accounts payable Income taxes...