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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 for this year is as follows:
| Ending Balance | Beginning Balance | ||||
| Cash and cash equivalents | $ | 118,400 | $ | 142,300 | |
| Accounts receivable | 93,900 | 101,200 | |||
| Inventory | 126,100 | 115,000 | |||
| Total current assets | 338,400 | 358,500 | |||
| Property, plant, and equipment | 333,000 | 322,000 | |||
| Less accumulated depreciation | 111,000 | 80,500 | |||
| Net property, plant, and equipment | 222,000 | 241,500 | |||
| Total assets | $ | 560,400 | $ | 600,000 | |
| Accounts payable | $ | 73,600 | $ | 130,700 | |
| Income taxes payable | 57,100 | 77,300 | |||
| Bonds payable | 138,000 | 115,000 | |||
| Common stock | 161,000 | 138,000 | |||
| Retained earnings | 130,700 | 139,000 | |||
| Total liabilities and stockholders’ equity | $ | 560,400 | $ | 600,000 | |
During the year, Ravenna paid a $13,800 cash dividend and it sold a piece of equipment for $6,900 that had originally cost $16,200 and had accumulated depreciation of $10,800. The company did not retire any bonds or repurchase any of its own common stock during the year.
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