Festival Corporation is preparing its statement of cash fl ows for the past year just ended on December 31st. The controller has gathered the following information about the past year.

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

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Retire bond payable (long-term.. Paid dividends in cash Decrease in Decrease in accounts pavable Sold land (investment) Increase in interest payable Cash balance, beginning of yar. Net income $16,000 Dec $35,000 Increase in salaries payable $ 7,000 Depreciation expense $ 6,000 Increase in prepaid insurance $26,000 Decrease in other short-term liabilities $ 900 Increase in taxes payable $87,000 Purchase of new computer system $91,000 rease in accounts receivable 8,000 S 9,000 10,000 $ 700 5,000 $ 2,000 17,000 inventory