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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	$	130,000	$	156,500
Accounts receivable		102,000		110,000
Inventory		137,000		125,000
Total current assets		369,000		391,500
Property, plant, and equipment		360,000		350,000
Less accumulated depreciation		120,000		87,500
Net property, plant, and equipment		240,000		262,500
Total assets	$	609,000	$	654,000
Accounts payable	$	80,000	$	142,000
Income taxes payable		62,000		86,000
Bonds payable		150,000		125,000
Common stock		175,000		150,000
Retained earnings		142,000		151,000
Total liabilities and stockholders equity	$	609,000	$	654,000

During the year, Ravenna paid a $15,000 cash dividend and it sold a piece of equipment for $7,500 that had originally cost $18,000 and had accumulated depreciation of $12,000. The company did not retire any bonds or repurchase any of its own common stock during the year. What is the amount of the net increase or decrease in cash and cash equivalents that would be shown on the companys statement of cash flows? What net income would the company include on its statement of cash flows?

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