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