Cash balance at prior year-end $40,400 Gain on sale of machinery Increase in inventory $2,100 5,400 Cash received from sale of machinery 9,700 Depreciation expense 4,400 Cash received from issuing stock Cash paid for dividends Increase in accounts payable 1,700 8,400 Net income 27,000 1,400 Decrease in accounts receivable 3,400 VPI CO. Cash flows from operating activities Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities