Cash balance at prior year-end Increase in inventory Depreciation expense Cash received from issuing stock Cash paid for dividends $42,000 7,000 6,000 10,000 3,000 Gain on sale of machinery Cash received from sale of machinery Increase in accounts payable Net income Decrease in accounts receivable $ 2,500 10,5ee 2,500 43, eee 5, eee VPI CO

Cash balance at prior year-end Increase in inventory Depreciation expense Cash received from issuing stock Cash paid for dividends $42,000 7,000 6,000 10,000 3,000 Gain on sale of machinery Cash received from sale of machinery Increase in accounts payable Net income Decrease in accounts receivable $ 2,500 10,5ee 2,500 43, eee 5, eee VPI CO. Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Net income 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 Changes in current operating assets and liabilities Decrease in accounts receivable Increase in inventory increase in accounts payable $ 0 Cash flows from investing activities Cash received from sale of machinery 0 Cash flows from financing activities Cash received from issuing stock Cash paid for dividends 0 $ 0 0