Question

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

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 $ 126,600 $ 152,250
Accounts receivable 100,000 107,800
Inventory 134,300 122,500
Total current assets 360,900 382,550
Property, plant, and equipment 354,000 343,000
Less accumulated depreciation 118,000 85,750
Net property, plant, and equipment 236,000 257,250
Total assets $ 596,900 $ 639,800
Accounts payable $ 78,400 $ 139,200
Income taxes payable 60,800 83,100
Bonds payable 147,000 122,500
Common stock 171,500 147,000
Retained earnings 139,200 148,000
Total liabilities and stockholders’ equity $ 596,900 $ 639,800

During the year, Ravenna paid a $14,700 cash dividend and it sold a piece of equipment for $7,350 that had originally cost $17,400 and had accumulated depreciation of $11,600. The company did not retire any bonds or repurchase any of its own common stock during the year.

11. What is the amount of net cash provided by (used in) operating activities in the company’s statement of cash flows?

12. What is the amount of gross cash outflows reported in the investing section of the company’s statement of cash flows?

13. What is the company’s net cash provided by (used in) investing activities?

14. What is the amount of gross cash inflows reported in the financing section of the company’s statement of cash flows?

15. What is the company’s net cash provided by (used in) financing activities?

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