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	$	40,600			Gain on sale of machinery	$	2,150
Increase in inventory		5,600			Cash received from sale of machinery		9,800
Depreciation expense		4,600			Increase in accounts payable		1,800
Cash received from issuing stock		8,600			Net income		29,000
Cash paid for dividends		1,600			Decrease in accounts receivable		3,600