50.1K

Verified Solution

Link Copied!

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
Cash	$	77,400	$	92,550
Accounts receivable		63,400		68,200
Inventory		85,100		77,500
Total current assets		225,900		238,250
Property, plant, and equipment		228,000		217,000
Less accumulated depreciation		76,000		54,250
Net property, plant, and equipment		152,000		162,750
Total assets	$	377,900	$	401,000
Accounts payable	$	49,600	$	88,200
Income taxes payable		38,600		48,300
Bonds payable		93,000		77,500
Common stock		108,500		93,000
Retained earnings		88,200		94,000
Total liabilities and stockholders equity	$	377,900	$	401,000

During the year, Ravenna paid a $9,300 cash dividend and it sold a piece of equipment for $4,650 that had originally cost $10,200 and had accumulated depreciation of $6,800. The company did not retire any bonds or repurchase any of its own common stock during the year.

1.What is the amount of net cash provided by (used in) operating activities in the companys statement of cash flows?

2.What is the amount of gross cash outflows reported in the investing section of the companys statement of cash flows?

3.What is the companys net cash provided by (used in) investing activities?

4. What is the amount of gross cash inflows reported in the financing section of the companys statement of cash flows?

5. What is the companys net cash provided by (used in) financing activities?

Answer & Explanation Solved by verified expert

See Answer