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:

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 thls vear is as follows: Cash Accounts recelvable Inventory Ending Beginning Balance Balance 130,000 $156,500 02,000 110,000 137,000 125,000 Total current assets 369,000 391,500 360,000 350,000 120,000 87,500 Property, plant, and equipment Less accumulated depreclation 262,500 Net property, plant, and equipment 240,000 Total assets $609,000 $654,000 Accounts payable Income taxes payable Bonds payable Common stock Retalned earnings $80,000 $142,000 62,000 86,000 50,000 125,000 175,000 150,000 42,000 151,000 Total lablities and stockholdersequity $609,000 $654,000 During the year, Ravenna pald a $15,000 cash dlvidend and It sold a plece of equlpment for $7,500 that had orlginally cost $18,000 and had accumulated depreclation of $12,000. The company did not retire any bonds or repurchase any of its own common stock durlng the year