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.

\begin{tabular}{lrl} Cash balance at prior year-end & $42,000 & Gain on sale of machinery \\ Increase in inventory & 7,000 & Cash received from sale of machinery \\ Depreciation expense & 6,000 & Increase in accounts payable \\ Cash received from issuing stock & 10,000 & Net income \\ Cash paid for dividends & 3,000 & Decrease in accounts receivable \end{tabular}