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: 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 Ending Balance $ 72,600 59,300 79,600 211,500 213,000 71,000 142,000 $ 353,500 $ 46,400 36,100 87,000 101,500 82,500 $ 353,500 Beginning Balance $ 86,850 63,800 72,500 223, 150 203,000 50,750 152, 250 $ 375,400 $ 82,500 45,400 72,500 87,000 88,000 $ 375,400 During the year, Ravenna paid a $8,700 cash dividend and sold a piece of equipment for $4,350 that originally cost $9,600 and had accumulated depreciation of $6,400. The company did not retire any bonds or repurchase any of its own common stock during the year. equired: What net change in cash and cash equivalents would be shown on the company's 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: 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 Ending Balance $ 72,600 59,300 79,600 211,500 213,000 71,000 142,000 $ 353,500 $ 46,400 36,100 87,000 101,500 82,500 $ 353,500 Beginning Balance $ 86,850 63,800 72,500 223, 150 203,000 50,750 152, 250 $ 375,400 $ 82,500 45,400 72,500 87,000 88,000 $ 375,400 During the year, Ravenna paid a $8,700 cash dividend and sold a piece of equipment for $4,350 that originally cost $9,600 and had accumulated depreciation of $6,400. The company did not retire any bonds or repurchase any of its own common stock during the year. equired: What net change in cash and cash equivalents would be shown on the company's statement of cash flows?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.19MCE

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