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 Increase in inventory Depreciation expense Cash received from issuing stock Cash paid for dividends $40,600 5,600 4,600 8,600 1,600 Gain on sale of machinery Cash received from sale of machinery Increase in accounts payable Net income Decrease in accounts receivable $ 2,150 9,800 1,800 29,000 3,600 Answer is complete but not entirely correct. VPI CO. Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Net loss 29,000 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 4,600 Gain on sale of machinery (2.150) Cash paid for dividends Changes in current operating assets and liabilities Decrease in accounts receivable 3,600 In SA in inventar (5.600) $ 0 3 29,000 $ ol 4,600 (2,150) 0 Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Net loss 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 Cash paid for dividends Changes in current operating assets and liabilities Decrease in accounts receivable Increase in inventory Increase in accounts payable Cash paid for dividends Nel cash provided by operating activities Cash flows from investing activities Cash received from sale of machinery Cash received from customers Net cash provided by investing activities Cash flows from financing activities Cash paid for dividends Cash received from issuing stock Cash received from customers Net cash provided by investing activities OO 3,600 (5,600) 1,800 0 OOO $ 31,250 9,800 0 9,800 (1.600) 8,600 0 ols 7.000 U 3,600 (5,600) 1,800 0 $ 31,250 9,800 Cash paid for dividends Changes in current operating assets and liabilities Decrease in accounts receivable Increase in inventory Increase in accounts payable Cash paid for dividends Net cash provided by operating activities Cash flows from investing activities Cash received from sale of machinery Cash received from customers Net cash provided by investing activities Cash flows from financing activities Cush paid for dividends Cash received from issuing stock Cash received from customers Net cash provided by investing activities Net increase in cash Cash balance of current year-end Cash balance at prior year-end 0 ** 9,800 lo (1.600) 8,600 0 $ 7,000 48,050 90 48.140