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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

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 $ 48,000 $ 57,000
Accounts receivable 41,000 44,000
Inventory 55,000 50,000
Property, plant, and equipment 150,000 140,000
Less accumulated depreciation (50,000) (35,000)
Total assets $ 244,000 $ 256,000
Accounts payable $ 32,000 $ 57,000
Income taxes payable 25,000 28,000
Bonds payable 60,000 50,000
Common stock 70,000 60,000
Retained earnings 57,000 61,000
Total liabilities and stockholders

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