The following information has been taken from the consolidation worksheet of Graham Company and its $80\%$ owned subsidiary, Stage Company.

$(1.)$ Graham reports a loss on sale of land of $$5,000.$ The land cost Graham $$20,000.$

$(2.)$ Noncontrolling interest in Stage's net income was $$30,000.$

$(3.)$ Graham paid dividends of $$15,000.$

$(4.)$ Stage paid dividends of $$10,000.$

$(5.)$ Excess acquisition$-$date fair value over book value was expensed by $$6,000.$

$(6.)$ Consolidated accounts receivable decreased by $$8,000.$

$(7.)$ Consolidated accounts payable decreased by $$7,000.$

Using the indirect method, where does the decrease in accounts payable appear in a consolidated statement of cash flows?

A$)$ $$7,000$ increases to net income as an operating activity

B$)$ $$7,000$ decreases to net income as an operating activity

C$)$ $$5,600$ increases to net income as an operating activity

D$)$ $$5,600$ decreases to net income as an operating activity

E$)$ $$7,000$ increase as a financing activity