Reporting changes in equipment on statement of cash flows An analysis of the general ledger accounts indicates that officer equipment which cost $89,000 and on which accumulated depreciation totaled $36,000 on the date of sale, was sold for $43,500 during the year. Using this information. Indicate the items to be reported on the statement of cash flows.

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 $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…

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 $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…

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 $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…

Required information Skip to question   [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 Cash and cash equivalents $ 102,000   $ 122,400 Accounts receivable   81,700     88,000 Inventory   109,700     100,000 Total current assets   293,400     310,400 Property, plant, and equipment   291,000     280,000 Less accumulated depreciation   97,000     70,000 Net property, plant, and equipment   194,000     210,000 Total assets $ 487,400   $ 520,400             Accounts payable $ 64,000   $ 113,700 Income taxes payable   49,700     65,700 Bonds payable   120,000     100,000 Common stock   140,000     120,000 Retained earnings   113,700     121,000 Total liabilities and stockholders’ equity $ 487,400   $ 520,400…

Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $154,100. Depreciation recorded on store equipment for the year amounted to $25,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:   End of Year Beginning of Year Cash $58,560   $53,290   Accounts receivable (net) 41,990   39,380   Inventories 57,330   59,950   Prepaid expenses 6,440   5,060   Accounts payable (merchandise creditors) 54,870   50,410   Wages payable 29,980   32,930   a.  Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.         Statement of Cash Flows (partial)   Cash flows from operating activities:   Net income    Adjustments to reconcile net income to net cash flow…

Cash Flows from Operating Activities—Indirect Method The income statement disclosed the following items for the year: Depreciation expense $53,700 Gain on disposal of equipment 31,310 Net income 391,700 The changes in the current asset and liability accounts for the year are as follows:   Increase(Decrease) Accounts receivable $8,360  Inventory (4,760)   Prepaid insurance (1,780) Accounts payable (5,670) Income taxes payable 1,780  Dividends payable 1,250  a. Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.   Statement of Cash Flows (partial)   Cash flows from operating activities: Net income  Adjustments to reconcile net income to net cash flow from operating activities: Depreciation  Gain on disposal of equipment  Changes in current operating assets and…

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Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $260,900. Depreciation recorded on equipment and a building amounted to $78,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:   End of Year Beginning of Year Cash $72,010   $74,890   Accounts receivable (net) 91,310   92,410   Inventories 180,030   159,220   Prepaid expenses 10,010   10,560   Accounts payable (merchandise creditors) 80,440   83,580   Salaries payable 11,590   10,410   a.  Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.     Statement of Cash Flows (partial) Cash flows from operating activities:     Net income  $fill in the blank 67ad34fdefd504f_2…

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 $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…