Ravenna Company is a merchandiser using the indirect method to prepare the operating activities section...
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Accounting
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: Ending Balance Beginning Balance 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 $ $ During the year, Ravenna paid a $ cash dividend and sold a piece of equipment for $ that originally cost $ and had accumulated depreciation of $ The company did not retire any bonds or repurchase any of its own common stock during the year. Would the operating activities section of the companys statement of cash flows contain an adjustment for a gain or a loss? What would be the amount and direction or of the adjustment?
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:
Ending Balance Beginning Balance
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 $ $
During the year, Ravenna paid a $ cash dividend and sold a piece of equipment for $ that originally cost $ and had accumulated depreciation of $ The company did not retire any bonds or repurchase any of its own common stock during the year.
Would the operating activities section of the companys 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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