indirect method. (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 $40,880 5,800 4,800 8,800 1,800 Gain on sale of machinery Cash received from sale of machinery Increase in accounts payable Net income Decrease in accounts receivable $ 2,200 9,990 1,909 31,000 3,800 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 $ 31.000 9 4.800 21200 Changes in current operating assets and liabilities Decrease in inventory 3 800 (5.860) Depreciation expense Gain on sale of machinery 11900 Increase in accounts payable $ 37 900 Increase in inventory Iva Ofece vassale ur mariery 0 Cash flows from financing activities 0 $ 37.900 VPI CO. Statement of Cash Flows (Indirect Method) For Current Year Ended December 311 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 $ 31.000 $ 4.800 2 200 3800 Changes in current operating assets and liabilities Decrease in accounts receivable Increase in inventory Increase in accounts payable 15.800) 1.900 ces $ 37.900 Cash flows from investing activities Cash received from sale of machinery V Cash flows from financing activities $ 37.900 37.900