Answer:
$85,500
Explanation:
VPI CO. Statement of Cash Flows (Indirect Method) For Current Year Ended December 31
Cash flows from operating activities
Net Income $ 27,000
Adjustment to reconcile net income to net cash provided by operating activities:
Income statement items not affecting cash
Depreciation expnese $ 4,400
Gain on sale of machinery $ (2,100)
Changes in current operating assets and liabilities:
Increase in inventory $ (5,400)
Increase in accounts payable $ 1,700
Decrease in accounts receivable $ 3,000
Net cash generated from operating activities $ 28,600(A)
Cash flow from investing activities:
Cash received from sale of Inventory $ 9,700
Net cash generated from investing activities $ 9,700 (B)
Cash flow from financing activities:
Cash received from issuing stock $8,600
Cash paid for dividends $ (1,400)
Net cash generated from financing activities (8,600-1,400) $ 7,200 (C)
Net increase in cash and cash equivalents (A+B+C) $ 45,500
Add: Beginning cash balance $40,000
Ending cash balance $85,500
