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I need help. Use the following information of VPI Co. to prepare a statement of cash flows for the year ended December 31 using the
I need help.
Use the following information of VPI Co. to prepare a statement of cash flows for the year ended December 31 using the Indirect method. (Amounts to be deducted should be indicated by a minus sign.) Cash balance at prior year-end Increase in inventory Depreciation expenso Cash received from Issuing stock Cash paid for dividends $42,800 7.800 6,800 10,800 3,800 Gain on sale of machinery Cash received from sale of machinery Increase in accounts payable Net income Decrease in accounts receivable $ 2,700 10,900 2,900 1 51.000 5,800 Answer is complete but not entirely correct. VPI CO. Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Net Income ls 51,000 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense $ 6.800 Gain on sale of machinery (2.700) Changes in current operating assets and liabilities Increase in accounts payable Increase in inventory Decrease in accounts receivable 0 (2.900) (7.800) 5,800 oo S 50,200 vities LULILUL. 1 points VPI CO. Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Gain on sale of machinery $ 51,000 $ 6,800 (2.700) Changes in current operating assets and liabilities Increase in accounts payable Increase in inventory Decrease in accounts receivable (2,900) (7.800) 5,800 $ 50,200 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of machinery 10,900 10,900 Net cash provided by investing activities Cash flows from financing activities Cash received from issuing stock Cash paid for dividends >> 10,800 (3,800) 7,000 68.100 $ Net cash provided by financing activities Net increase in cash Cash balance at prior year-end Cash balance at current year-end 42,800 110,900 Step by Step Solution
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