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 $ 61,000 $ 72,650 Accounts receivable 51,200 55,000 Inventory 68,700 62,500 Total current assets 180,900 190,150 Property, plant, and equipment 186,000 175,000 Less accumulated depreciation 62,000 43,750 Net property, plant, and equipment 124,000 131,250 Total assets $ 304,900 $ 321,400

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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:

 

  Ending Balance   Beginning Balance
Cash $ 61,000   $ 72,650
Accounts receivable   51,200     55,000
Inventory   68,700     62,500
Total current assets   180,900     190,150
Property, plant, and equipment   186,000     175,000
Less accumulated depreciation   62,000     43,750
Net property, plant, and equipment   124,000     131,250
Total assets $ 304,900   $ 321,400
           
Accounts payable $ 40,000   $ 71,200
Income taxes payable   31,200     36,700
Bonds payable   75,000     62,500
Common stock   87,500     75,000
Retained earnings   71,200     76,000
Total liabilities and stockholders’ equity $ 304,900   $ 321,400
 

 

During the year, Ravenna paid a $7,500 cash dividend and it sold a piece of equipment for $3,750 that had originally cost $7,800 and had accumulated depreciation of $5,200. The company did not retire any bonds or repurchase any of its own common stock during the year.

Questions:

A) What is the amount of gross cash inflows reported in the financing section of the company’s statement of cash flows?

B) What is the company’s net cash provided by (used in) financing activities?

C) What is the total amount of the debits recorded in the Accounts Payable T-account during the year?

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
$ 61,000
Beginning
Balance
Cash
$ 72,650
Accounts receivable
51,200
Inventory
55,000
62,500
68,700
Total current assets
180,900
190,150
Property, plant, and equipment
186,000
175,000
62,000
43,750
Less accumulated depreciation
Net property, plant, and equipment
Total assets
124,000
131,250
$ 304,900
$ 321,400
Accounts payable
$ 40,000
$ 71,200
31, 200
36,700
Income taxes payable
Bonds payable
Common stock
75,000
62,500
87,500
75,000
Retained earnings
71,200
76,000
Total liabilities and stockholders' equity
$ 304,900
$ 321,400
During the year, Ravenna paid a $7,500 cash dividend and it sold a piece of equipment
for $3,750 that had originally cost $7,800 and had accumulated depreciation of $5,200.
The company did not retire any bonds or repurchase any of its own common stock
during the year.
14. What is the amount of gross cash inflows reported in the financing section of the company's statement
of cash flows?
Gross cash inflows
Transcribed Image Text: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 $ 61,000 Beginning Balance Cash $ 72,650 Accounts receivable 51,200 Inventory 55,000 62,500 68,700 Total current assets 180,900 190,150 Property, plant, and equipment 186,000 175,000 62,000 43,750 Less accumulated depreciation Net property, plant, and equipment Total assets 124,000 131,250 $ 304,900 $ 321,400 Accounts payable $ 40,000 $ 71,200 31, 200 36,700 Income taxes payable Bonds payable Common stock 75,000 62,500 87,500 75,000 Retained earnings 71,200 76,000 Total liabilities and stockholders' equity $ 304,900 $ 321,400 During the year, Ravenna paid a $7,500 cash dividend and it sold a piece of equipment for $3,750 that had originally cost $7,800 and had accumulated depreciation of $5,200. The company did not retire any bonds or repurchase any of its own common stock during the year. 14. What is the amount of gross cash inflows reported in the financing section of the company's statement of cash flows? Gross cash inflows
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