method. Use the following information of VPI Company to prepare a statement of cash flows for the year ended December 31 using the indirect 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 $ 40,400 Gain on sale of machinery 5,400 Cash received from sale of machinery 4,400 Increase in accounts payable 8,400 Net income 1,400 Decrease in accounts receivable $ 2,100 9,700 1,700 27,000 3,400 VPI COMPANY Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Net income $ 27,000 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 Cash flows from investing activities Cash flows from financing activities VPI COMPANY Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 $ 27,000 Counts receivable Cash flows from operating activities Net income $ 27,000 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 Increase in inventory Changes in current operating assets and liabilities Decrease in accounts receivable Increase in accounts payable $ 4,400 (2,100) (5,400) 3,400 1,700 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of machinery Net cash provided by investing activities 9,700 Cash flows from financing activities Cash received from issuing stock 8,400 Cash paid for dividends (1,400) Net cash provided by financing activities Net increase in cash Cash balance at prior year-end Cash balance at current year-end $ 29,000 9,700 7,000 $ 45,700 40,400 $ 86,100