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 $ 118,400 $ 142,300 Accounts receivable 93,900 101,200 Inventory 126,100 115,000 Total current assets 338,400 358,500 Property, plant, and equipment 333,000 322,000 Less accumulated depreciation 111,000 80,500 Net property, plant, and equipment 222,000 241,500 Total assets $ 560,400 $ 600,000 Accounts payable $ 73,600 $ 130,700 Income taxes payable 57,100 77,300 Bonds payable 138,000 115,000 Common stock 161,000 138,000 Retained earnings 130,700 139,000 Total liabilities and stockholders’ equity $ 560,400 $ 600,000 During the year, Ravenna paid a $13,800 cash dividend and it sold a piece of equipment for $6,900 that had originally cost $16,200 and had accumulated depreciation of $10,800. The company did not retire any bonds or repurchase any of its own common stock during the year.
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 $ 118,400 $ 142,300 Accounts receivable 93,900 101,200 Inventory 126,100 115,000 Total current assets 338,400 358,500 Property, plant, and equipment 333,000 322,000 Less accumulated depreciation 111,000 80,500 Net property, plant, and equipment 222,000 241,500 Total assets $ 560,400 $ 600,000 Accounts payable $ 73,600 $ 130,700 Income taxes payable 57,100 77,300 Bonds payable 138,000 115,000 Common stock 161,000 138,000 Retained earnings 130,700 139,000 Total liabilities and stockholders’ equity $ 560,400 $ 600,000 During the year, Ravenna paid a $13,800 cash dividend and it sold a piece of equipment for $6,900 that had originally cost $16,200 and had accumulated depreciation of $10,800. The company did not retire any bonds or repurchase any of its own common stock during the year.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter12: The Statement Of Cash Flows
Section: Chapter Questions
Problem 12.17E
Related questions
Question
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 | $ | 118,400 | $ | 142,300 | |
Accounts receivable | 93,900 | 101,200 | |||
Inventory | 126,100 | 115,000 | |||
Total current assets | 338,400 | 358,500 | |||
Property, plant, and equipment | 333,000 | 322,000 | |||
Less accumulated |
111,000 | 80,500 | |||
Net property, plant, and equipment | 222,000 | 241,500 | |||
Total assets | $ | 560,400 | $ | 600,000 | |
Accounts payable | $ | 73,600 | $ | 130,700 | |
Income taxes payable | 57,100 | 77,300 | |||
Bonds payable | 138,000 | 115,000 | |||
Common stock | 161,000 | 138,000 | |||
130,700 | 139,000 | ||||
Total liabilities and |
$ | 560,400 | $ | 600,000 | |
During the year, Ravenna paid a $13,800 cash dividend and it sold a piece of equipment for $6,900 that had originally cost $16,200 and had accumulated depreciation of $10,800. The company did not retire any bonds or repurchase any of its own common stock during the year.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning