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Net property, plant, and equipment Total assets. Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity 170,000 $426,500 $ 56,000 43,500 105,000 122,500 99,500 $426,500 Net income During the year, Ravenna paid a $10,500 cash dividend and it sold a piece of equipment for $5, originally cost $12,000 and had accumulated depreciation of $8,000. The company did not reti repurchase any of its own common stock during the year. 2. What net income would the company include on its statement of cash flows? 183,750 $ 455,000 $ 99,500 57,000 87,500 105,000 106,000 $ 455,000

Net property, plant, and equipment Total assets. Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity 170,000 $426,500 $ 56,000 43,500 105,000 122,500 99,500 $426,500 Net income During the year, Ravenna paid a $10,500 cash dividend and it sold a piece of equipment for $5, originally cost $12,000 and had accumulated depreciation of $8,000. The company did not reti repurchase any of its own common stock during the year. 2. What net income would the company include on its statement of cash flows? 183,750 $ 455,000 $ 99,500 57,000 87,500 105,000 106,000 $ 455,000

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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S 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 & cash equivalents 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 < Prev 2 3 353 4 Ending Balance $ 89,000 71,500 96,000 256,500 255,000 85,000 170,000 15 $426,500 $ 56,000 43,500 105,000 122,500 99,500 $426,500 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. of 15 Beginning Balance $ 106,750 # 77,000 87,500 271,250 245,000 61,250 183,750 $455,000 $99,500 57,000 87,500 105,000. 106,000 $ 455,000 Next >
Transcribed Image Text:S 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 & cash equivalents 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 < Prev 2 3 353 4 Ending Balance $ 89,000 71,500 96,000 256,500 255,000 85,000 170,000 15 $426,500 $ 56,000 43,500 105,000 122,500 99,500 $426,500 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. of 15 Beginning Balance $ 106,750 # 77,000 87,500 271,250 245,000 61,250 183,750 $455,000 $99,500 57,000 87,500 105,000. 106,000 $ 455,000 Next >
Net property, plant, and equipment Total assets Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity 170,000 $426,500 $ 56,000 43,500 105,000 122,500 99,500 $ 426,500 Net income 2. What net income would the company include on its statement of cash flows? 4 183,750 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and it sold a piece of equipment for $5,2 originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire repurchase any of its own common stock during the year. $ 99,500 57,000 87,500 105,000 106,000 $455,000
Transcribed Image Text:Net property, plant, and equipment Total assets Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity 170,000 $426,500 $ 56,000 43,500 105,000 122,500 99,500 $ 426,500 Net income 2. What net income would the company include on its statement of cash flows? 4 183,750 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and it sold a piece of equipment for $5,2 originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire repurchase any of its own common stock during the year. $ 99,500 57,000 87,500 105,000 106,000 $455,000
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