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 $ $
Accounts receivable
Inventory
Total current assets
Property, plant, and equipment
Less accumulated depreciation
Net property, plant, and equipment
Total assets $ $
Accounts payable $ $
Income taxes payable
Bonds payable
Common stock
Retained earnings
Total liabilities and stockholders equity $ $
During the year, Ravenna paid a $ cash dividend and sold a piece of equipment for $ that originally cost $ and had accumulated depreciation of $ The company did not retire any bonds or repurchase any of its own common stock during the year.
How much depreciation would the company add to net income on its statement of cash flows?
