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Ravenna Company is a merchandiser using the indirect method to prepare the operating activities section...

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Accounting

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.
3. How much depreciation would the company add to net income on its statement of cash flows?

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