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Sterling Corporation's recent comparative balance sheet and income statement follow.

$\backslash$table$[[$Balance Sheet, December $31,$Prior Year,Current Year,Difference$],[$Assets$,,,],[$Cash and cash equivalents,$$34,000,$$$33,500,$$$(500)],[$Accounts receivable $($net$),12,000,17,000,5,000],[$Inventory$,16,000,14,000,(2,000)],[$Investment$,$ long$-$term,$6,000,-,(6,000)],[$Fixed assets,$80,000,98,000,18,000],[$Accumulated depreciation,$(48,000),(39,000),9,000],[$Total assets,$$100,000,$$$123,500,$$$23,500],[$Liabilities and Stockholders' Equity,,,$],[$Accounts payable,$$19,000,$$$12,000,$$$(7,000)],[$Bonds payable,$10,000,30,000,20,000],[$Common stock, no$-$par,$50,000,65,000,15,000],[$Retained earnings,$21,000,28,000,7,000],[$Treasury stock,$-,(11,500),(11,500)],[$Total liabilities and stockholders' equity,$$100,000,$$$123,500,$$$23,500]]$

$\backslash$table$[[$Income Statement, For,$],[$Year Ended, December $31,$Current Year$],[$Sales revenue,$$70,000],[$Cost of goods sold,$(42,000)],[$Gross margin,$28,000],[$Depreciation expense,$(5,000)],[$Other operating expenses,$(18,000)],[$Gain on sale of investments,$3,000],[$Loss on sale of fixed assets,$(1,000)],[$Net income,$$7,000]]$Sterling Corporation's recent comparative balance sheet and income statement follow.

$\backslash$table$[[$Balance Sheet, December $31,$Prior Year,Current Year,Difference$],[$Assets$,,,],[$Cash and cash equivalents,$$34,000,$$$33,500,$$$(500)],[$Accounts receivable $($net$),12,000,17,000,5,000],[$Inventory$,16,000,14,000,(2,000)],[$Investment$,$ long$-$term,$6,000,-,(6,000)],[$Fixed assets,$80,000,98,000,18,000],[$Accumulated depreciation,$(48,000),(39,000),9,000],[$Total assets,$$100,000,$$$123,500,$$$23,500],[$Liabilities and Stockholders' Equity,,,$],[$Accounts payable,$$19,000,$$$12,000,$$$(7,000)],[$Bonds payable,$10,000,30,000,20,000],[$Common stock, no$-$par,$50,000,65,000,15,000],[$Retained earnings,$21,000,28,000,7,000],[$Treasury stock,$-,(11,500),(11,500)],[$Total liabilities and stockholders' equity,$$100,000,$$$123,500,$$$23,500]]$

$\backslash$table$[[$Income Statement, For,$],[$Year Ended, December $31,$Current Year$],[$Sales revenue,$$70,000],[$Cost of goods sold,$(42,000)],[$Gross margin,$28,000],[$Depreciation expense,$(5,000)],[$Other operating expenses,$(18,000)],[$Gain on sale of investments,$3,000],[$Loss on sale of fixed assets,$(1,000)],[$Net income,$$7,000]]$

$1.$ Sold fixed assets for cash; cost, $$21,000,$ and two$-$thirds depreciated.

$2.$ Purchased fixed assets for cash, $$9,000.$

$3.$ Purchased fixed assets; exchanged bonds of $$30,000($face value and fair value$)$ in payment.

$4.$ Sold the long$-$term investments for cash. Assume carrying value of the investment is equal to its original purchase price.

$5.$ Purchased treasury stock for cash, $$11,500.$

$6.$ Retired bonds payable at maturity date by issuing common stock, $$10,000.$

$7.$ Issued common stock for cash, $$5,000.$

Prepare the statement of cash flows for the current year ended December $31,$ assuming the indirect method is used in presenting cash flows from operating activities.

Note: Indicate a subtraction in the cash flow statement with a negative sign with the amount.

Prepare the statement of cash flows for the current year ended December $31,$ assuming the indirect method is used in presenting cash flows from operating activities.

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