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:

Ending Balance Beginning Balance

Cash and cash equivalents $ $61,000$ $ $72,650$

Accounts receivable $51,20055,000$

Inventory $68,70062,500$

Total current assets $180,900190,150$

Property, plant, and equipment $186,000175,000$

Less accumulated depreciation $62,00043,750$

Net property, plant, and equipment $124,000131,250$

Total assets $ $304,900$ $ $321,400$

Accounts payable $ $40,000$ $ $71,200$

Income taxes payable $31,20036,700$

Bonds payable $75,00062,500$

Common stock $87,50075,000$

Retained earnings $71,20076,000$

Total liabilities and stockholders$$ equity $ $304,900$ $ $321,400$

During the year, Ravenna paid a $$7,500$ cash dividend and sold a piece of equipment for $$3,750$ that originally cost $$7,800$ and had accumulated depreciation of $$5,200.$ The company did not retire any bonds or repurchase any of its own common stock during the year.