Use the following Information of VPI Company to prepare a statement of cash flows for the year ended December $31$ using the Indirect method.

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

$$40,000$ Gain on sale of machinery

$5,000$ Cash received from sale of machinery

$4,000$ Increase in accounts payable

$8,000$ Net income

$1,000$ Decrease in accounts receivable

$$2,000$

$9,500$

$1,500$

$23,000$

$3,000$

$\backslash$table$[[$VPI COMPANY$],[$Statement of Cash Flows $($Indirect Method$)],[$For Current Year Ended December $31],[$Cash flows from operating activities,,$],[$Net income,$23,000,],[$Adjustments to reconcile net income to net cash provided by operating activities,,$],[$Income statement items not affecting cash,,$],[$Depreciation expense,$4,000,],[$Gain on sale of machinery,$(2,000),],[,,],[$Changes in current operating assets and liabilities,,$],[$Increase in inventory,$(5,000),],[$Increase in inventory,$1,500,],[,,],[,,],[$Net cash used by operating activities,,$21,500],[$Cash flows from investing activities,,$],[$Cash received from sale of machinery,$9,500,],[2020,x,],[$Net cash provided by investing activities,,$9,500],[$Cash flows from financing activities,,$],[$Cash paid for dividends,$(1,000),],[,2,],[,,]]$