Festival Corporation is preparing its statement of cash flows for the past year. The company has gathered the following information about the past year just ended on December' $31.$

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Requirement

Prepare a statement of cash flows for the past year using the indirect method.

Prepare the statement one section at a time. $($Use parentheses or a minus sign for numbers to be subtracted or for a net cash outflow.$)$

Festival Corporation

Statement of Cash Flows $($Indirect Method$)$

For the Year Ended December $31$

Operating Activities:

Activity

$\backslash$table$[[$Retire bond payable $($long$-$term$).,$$$,15,000,$Decrease in accounts receivable.,$$,11,000],[$Paid dividends in cash.,$$,30,000,$Increase in salaries payable.,$$,6,000],[$Decrease in inventory,$$,9,000,$Depreciation expense.,$$,17,000],[$Decrease in accounts payable.,$$,6,000,$Increase in prepaid insurance.,$$,300],[$Sold land $($investment$),$$$,24,000,$Decrease in other sho tt$-$term liabilities.,$$,2,000],[$Increase in interest payable.,$$,500,$Increase in taxes payable $..........,$$$,4,000],[$Cash balance, beginning of year.,$$,86,000,$Purchase of new computer system with cash. $.,$$$,18,000]]$