Required information [The following information applies to the questions displayed befow] Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activites section of its statement of cash flows. Its bolance sheet for this year is as follows: Dunng the year. Ravenne poid a \$10,500 cash dividend and it sold a piece of equipment for \$5,250 that had originally cost $12,000 and had accumulated depreciotion of $8,000. The company did not retire any bonds or repurchase any of ats own common stock during the year. 3. How much depreciation would the company add to net income on its statement of cash flows