QS 12-18 (Algo) Indirect: Preparing statement of cash flows LO P2, P3 Use the following information of VPI Company 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 $ 44,000 Gain on sale of machinery $ 3,000 Increase in inventory 9,000 Cash received from sale of machinery 11,500 Depreciation expense 8,008 Increase in accounts payable 3,500 Cash received from issuing stock 12,000 Net Income 63,000 Cash paid for dividends 5,000 Decrease in accounts receivable 7,000 VPI COMPANY 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 Changes in current operating assets and liabilities $ Cash flows from investing activities