S 12-18 Indirect: Preparing statement of cash flows LO P2, P3 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 $41,200 Gain on sale of machinery $ 2,300 Increase in inventory 6,200 Depreciation expense 5,200 Cash received from issuing stock Cash received from sale of machinery Increase in accounts payable 10,100 2,100 9,200 Net income Cash paid for dividends 2,200 Decrease in accounts receivable. 35,000 4, 200 VPI CO. Statement of Cash Flows (Indirect Method) Cash flows from operating activities 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 Cash flows from investing activities O VPI CO. Statement of Cash Flows (Indirect Method) Cash flows from operating activities 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 Cash flows from investing activities Cash flows from financing activities $ 0 $ 0