Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section...

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Accounting

Ravenna Company is a merchandiser that uses the indirect methodto prepare the operating activities section of its statement ofcash flows. Its balance sheet for this year is as follows:
Ending Balance Beginning Balance
Cash $ 52,800 $ 62,700
Accounts receivable 45,100 48,400
Inventory 60,500 55,000
Total current assets 158,400 166,100
Property, plant, and equipment 165,000 154,000
Less accumulated depreciation 55,000 38,500
Net property, plant, and equipment 110,000 115,500
Total assets $ 268,400 $ 281,600
Accounts payable $ 35,200 $ 62,700
Income taxes payable 27,500 30,900
Bonds payable 66,000 55,000
Common stock 77,000 66,000
Retained earnings 62,700 67,000
Total liabilities and stockholders’ equity $ 268,400 $ 281,600
During the year, Ravenna paid a $6,600 cash dividend and it solda piece of equipment for $3,300 that had originally cost $6,600 andhad accumulated depreciation of $4,400. The company did not retireany bonds or repurchase any of its own common stock during theyear.
11. What is the amount of net cash provided by (used in)operating activities in the company’s statement of cash flows?

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3.9 Ratings (616 Votes)

Ans Particulars Amount Cash flow from operating activities Net income 2300 Adjustments to reconcile Net income to Net cash provided by used for Operating Activities Add Depreciation expenses 20900 Less Gain on sale of plant assets 1100 Add Decrease in accounts See Answer

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	Ending Balance		Beginning Balance
Cash	$	52,800	$	62,700
Accounts receivable		45,100		48,400
Inventory		60,500		55,000
Total current assets		158,400		166,100
Property, plant, and equipment		165,000		154,000
Less accumulated depreciation		55,000		38,500
Net property, plant, and equipment		110,000		115,500
Total assets	$	268,400	$	281,600

Accounts payable	$	35,200	$	62,700
Income taxes payable		27,500		30,900
Bonds payable		66,000		55,000
Common stock		77,000		66,000
Retained earnings		62,700		67,000
Total liabilities and stockholders’ equity	$	268,400	$	281,600