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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 $ 89,000 71,500 96,000 Cash & cash equivalents $ 106,750 Accounts receivable 77,000 87,500 271,250 Inventory Total current assets 256,500 Property, plant, and equipment Less accumulated depreciation 255,000 85,000 170,000 245,000 61,250 183,750 Net property, plant, and equipment Total assets $ 426,500 $ 455,000 $ 56,000 43,500 105,000 122,500 99,500 $ 99,500 Accounts payable Income taxes payable Bonds payable 57,000 87,500 105,000 106,000 $ 455,000 Common stock Retained earnings Total liabilities and stockholders' equity $ 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.

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 $ 89,000 71,500 96,000 Cash & cash equivalents $ 106,750 Accounts receivable 77,000 87,500 271,250 Inventory Total current assets 256,500 Property, plant, and equipment Less accumulated depreciation 255,000 85,000 170,000 245,000 61,250 183,750 Net property, plant, and equipment Total assets $ 426,500 $ 455,000 $ 56,000 43,500 105,000 122,500 99,500 $ 99,500 Accounts payable Income taxes payable Bonds payable 57,000 87,500 105,000 106,000 $ 455,000 Common stock Retained earnings Total liabilities and stockholders' equity $ 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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10. Would the operating activities section of the company’s statement of cash flows contain an adjustment for a gain or a loss? What would be the amount and direction (+ or − ) of the adjustment?

 

11. What is the amount of net cash provided by (used in) operating activities in the company’s statement of cash flows?

 

12. What is the amount of gross cash outflows reported in the investing section of the company’s statement of cash flows?

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 Beginning Balance Balance $ 89,000 71,500 96,000 $ 106,750 77,000 87,500 Cash & cash equivalents Accounts receivable Inventory 271,250 245,000 61,250 Total current assets 256,500 Property, plant, and equipment Less accumulated depreciation 255,000 85,000 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable Income taxes payable Bonds payable Common stock $ 56,000 43,500 105,000 122,500 99,500 $ 99,500 57,000 87,500 105,000 106,000 Retained earnings Total liabilities and stockholders' equity $ 426,500 $ 455,000 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. 10. Would the operating activities section of the company's statement of cash flows contain an adjustment for a gain or a loss? What would be the amount and direction (+ or – ) of the adjustment?
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 Beginning Balance Balance $ 89,000 71,500 96,000 $ 106,750 77,000 87,500 Cash & cash equivalents Accounts receivable Inventory 271,250 245,000 61,250 Total current assets 256,500 Property, plant, and equipment Less accumulated depreciation 255,000 85,000 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable Income taxes payable Bonds payable Common stock $ 56,000 43,500 105,000 122,500 99,500 $ 99,500 57,000 87,500 105,000 106,000 Retained earnings Total liabilities and stockholders' equity $ 426,500 $ 455,000 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. 10. Would the operating activities section of the company's statement of cash flows contain an adjustment for a gain or a loss? What would be the amount and direction (+ or – ) of the adjustment?
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