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 VPI COMPANY Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Gain on sale of machinery $ 43,400 8,400 Cash received from sale of machinery 7,400 Increase in accounts payable 11,400 Net income 4,400 Decrease in accounts receivable Cash flows from investing activities Cash flows from financing activities $ 2,850 11, 200 3,200 57,000 6,400

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 VPI COMPANY Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Gain on sale of machinery $ 43,400 8,400 Cash received from sale of machinery 7,400 Increase in accounts payable 11,400 Net income 4,400 Decrease in accounts receivable Cash flows from investing activities Cash flows from financing activities $ 2,850 11, 200 3,200 57,000 6,400

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Description: Use the following information of VPI Company to prepare a statement of cash flows for the year ended December 31 using theindirect method.Note: Amounts to be deducted should be indicated by a minus sign.Cash balance at prior year-endIncrease in inve

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On an indirect method statement of cash flows, an increase in accounts payable isa. deducted from net income in the operating activities section.b. reported in the financing activities section.c. added to net income in the operating activities section.d. reported in the investing activities section.
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