QS $16-18($Algo$)$ Indirect: Preparing statement of cash flows LO P$2,$ P$3$

Use the following information of VPI Company to prepare a statement of cash flows for the year ended December $31$ using the indirect method.

Note: Amounts to be deducted should be indicated by a minus sign.

Cash balance at prior year$-$end

Increase in inventory

Depreciation expense

Cash received from issuing stock

Cash paid for dividends

$ $42,800$

$7,800$

Gain on sale of machinery

Cash recelved from sale of machinery Increase in accounts payable

Net income

Decrease in accounts receivable

$$2,700$

$10,900$

$2,900$

$51,000$

$5,800$

VPI COMPANY

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

For Current Year Ended December $31$

Cash flows from operating activities

Adjustments to reconcile net income to net cash provided by operating activities

Income statement items not affecting cash