Answer:
                                                  VPI Co.
             Cashflow statement for the year ended December 31
                                                                                $
Operating activities                                            
Net income                                                         59,000
Add Depreciation                                                 7600
Less gain from sale of machinery                      (2900)
Increase in Inventory                                          (8,600)
Increase in accounts payable                              3,300
Decrease in accounts  receivable                      <u>  6,600</u>
Cash flow from Operating activities                  65,000
Investing activities
Cash received from sale of  machinery              11,300
Financing activities
Cash paid for dividends                                      (4,600)
Net cashflow                                                        71,700
Cash balance at prior year-end                       <u> </u><u>43,600</u>
Cash balance at current year-end                  <u> 114,300</u>
Explanation:
The indirect method of cashflow statements starts with the cashflows from the operating activities to Financing and then investing activities.
An increase in an asset other than cash is a decrease in cash and vice versa. An increase in a liability is an increase in cash and vice versa. We add or subtract none cash items like depreciation, gain on asset disposal etc.