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 $ $40,200$ Gain on sale of machinery $ $2,050$

Increase in inventory $5,200$ Cash received from sale of machinery $9,600$

Depreciation expense $4,200$ Increase in accounts payable $1,600$

Cash received from issuing stock $8,200$ Net income $25,000$

Cash paid for dividends $1,200$ Decrease in accounts receivable $3,200$