QS 16-18 Indirect: Preparing statement of cash flows GP2 @ P3 Use the following information for VPI Co. to prepare a statement of cash flows for the year ended December 31 using the indirect method. $40,000 5,000 4,000 8,000 Cash balance at prior year-end Increase in inventory Depreciation expense Cash received from issuing stock Cash paid for dividends Gain on sale of machinery Cash received from sale of machinery Increase in accounts payable Net income 1,000 2,000 9,500 1,500 23,000 Decrease in accounts receivable 3,000