Ravenna Company is a merchandiser using 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 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity Ending Balance $ 72,600 59,300 79,600 211,500 213,000 71,000 142,000 $ 353,500 $ 46,400 36,100 87,000 101,500 82,500 $ 353,500 Beginning Balance $86,850 63,800 72,500 223, 150 203,000 50,750 152, 250 $ 375,400 $ 82,500 45,400 72,500 87,000 88,000 $ 375,400 During the year, Ravenna paid a $8,700 cash dividend and sold a piece of equipment for $4,350 that originally cost $9,600 and had accumulated depreciation of $6,400. The company did not retire any bonds or repurchase any of its own common stock during the year. quired: What net change in cash and cash equivalents would be shown on the company's statement of cash flows?
Ravenna Company is a merchandiser using 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 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity Ending Balance $ 72,600 59,300 79,600 211,500 213,000 71,000 142,000 $ 353,500 $ 46,400 36,100 87,000 101,500 82,500 $ 353,500 Beginning Balance $86,850 63,800 72,500 223, 150 203,000 50,750 152, 250 $ 375,400 $ 82,500 45,400 72,500 87,000 88,000 $ 375,400 During the year, Ravenna paid a $8,700 cash dividend and sold a piece of equipment for $4,350 that originally cost $9,600 and had accumulated depreciation of $6,400. The company did not retire any bonds or repurchase any of its own common stock during the year. quired: What net change in cash and cash equivalents would be shown on the company's statement of cash flows?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ravenna Company is a merchandiser using 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
Accounts payable
Income taxes payable
Bonds payable
Common stock
Retained earnings
Total liabilities and stockholders' equity
Ending
Balance
$ 72,600
59,300
79,600
211,500
213,000
71,000
142,000
$ 353,500
$ 46,400
36,100
87,000
101,500
82,500
$ 353,500
Beginning
Balance
$ 86,850
63,800
72,500
223, 150
203,000
50,750
152,250
$375,400
$ 82,500
45,400
72,500
87,000
88,000
$375,400
During the year, Ravenna paid a $8,700 cash dividend and sold a piece of equipment for $4,350 that originally cost
$9,600 and had accumulated depreciation of $6,400. The company did not retire any bonds or repurchase any of its own
common stock during the year.
Required:
1. What net change in cash and cash equivalents would be shown on the company's statement of cash flows?
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