Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ravenna company is a merchandiser using the indire

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

60.1K

Verified Solution

Question

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 $ 61,000 $ 72,650
Accounts receivable 51,20055,000
Inventory 68,70062,500
Total current assets 180,900190,150
Property, plant, and equipment 186,000175,000
Less accumulated depreciation 62,00043,750
Net property, plant, and equipment 124,000131,250
Total assets $ 304,900 $ 321,400
Accounts payable $ 40,000 $ 71,200
Income taxes payable 31,20036,700
Bonds payable 75,00062,500
Common stock 87,50075,000
Retained earnings 71,20076,000
Total liabilities and stockholders equity $ 304,900 $ 321,400
During the year, Ravenna paid a $7,500 cash dividend and sold a piece of equipment for $3,750 that originally cost $7,800 and had accumulated depreciation of $5,200. The company did not retire any bonds or repurchase any of its own common stock during the year.
3. How much depreciation would the company add to net income on its statement of cash flows?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

** Pascal ** Write a simple program in Pascal with these specifications: 1. Calculates real root of...

Programming
Q

1)      Do linear regression (includes line, r-coefficient) for data taken from a thermocouple during calibration for: Voltage (Volts) Temperature...

Electrical Engineering
Q

Give a brief overview on the history of mental health treatment (remember to put everything into...

Psychology
Q

2 Scientists often work together with other scientists If you were working in a scientific...

Biology
Q

Acircle has in weer of 32 sa What is the exact circum of the cirule...

Geometry
Q

Reuben rented a truck for one day. There was a base fee of $20.95, and...

Basic Math
Q

Find f.f(x)f"(x) = 6 + 6x + 24x, f(0) = 2, f(1) = 10

Basic Math
Q

Phi Delta Kappa PDK is an international professional organization for educators that in collaboration with...

Statistics
Q

Iding 30 by 6 You are standing 50 meters from a hot air balloon that...

Algebra
Q

Jaybird Inc produces leather handbags. The sales budget for the next four months is July...

Accounting
Q

Given the following balance sheet and income statement data for the year ended December 31,...

Accounting
Q

Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell Inc. issued...

Accounting