Jse 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 $40,400 5,400 4,400 8,400 1,400 Gain on sale of machinery Cash received from sale of machinery Increase in accounts payable Net income Decrease in accounts receivable $ 2,100 9,700 1,700 27,000 3,400 VPI CO. Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Net income 2$ 27,000 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 2$ 4,400 Gain on sale of machinery 2,100 Changes in current operating assets and liabilities Decrease in accounts receivable 3,400 3,400 Increase in inventory Oncrease in accounts pavable 1,700

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
$40,400
5,400
4,400
8,400
1,400
Gain on sale of machinery
Cash received from sale of machinery
Increase in accounts payable
$ 2,100
9,700
1,700
27,000
3,400
Net income
Decrease in accounts receivable
VPI CO.
Statement of Cash Flows (Indirect Method)
For Current Year Ended December 31
Cash flows from operating activities
Net income
27,000
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Depreciation expense
4,400
Gain on sale of machinery
2,100
Changes in current operating assets and liabilities
Decrease in accounts receivable
3,400
Increase in inventory
3,400
Increase in accounts payable
1,700
%24
%24
Transcribed Image Text: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 $40,400 5,400 4,400 8,400 1,400 Gain on sale of machinery Cash received from sale of machinery Increase in accounts payable $ 2,100 9,700 1,700 27,000 3,400 Net income Decrease in accounts receivable VPI CO. Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Net income 27,000 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 4,400 Gain on sale of machinery 2,100 Changes in current operating assets and liabilities Decrease in accounts receivable 3,400 Increase in inventory 3,400 Increase in accounts payable 1,700 %24 %24
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