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 $ 40,400 Gain on sale of machinery $ 2,100 Increase in inventory 5,400 Cash received from sale of machinery 9,700 Depreciation expense 4,400 Increase in accounts payable 1,700 Cash received from issuing stock 8,400 Net income 27,000 Cash paid for dividends 1,400 Decrease in accounts receivable 3,400

Cash and cash equivalents at the end of the year is $90,100.

Explanation:

VPI Co.

Statement of Cash Flows

Net income                                                                            $27,000

Add: Depreciation expense                                                   $4,400

        Increase in accounts payable                                        $1,700

        Increase in inventory                                                     $5,400

Less: Gain on sale of machinery                                           -$2,100

         Decrease in accounts receivable                               -$3,400

Net cash flows from operating activities                          $33,000...(a)

Proceeds from sale of machinery                                          $9,700

Net cash flows (used in) / from investing activities           $9,700...(b)

Proceeds from issuing stock                                                 $8,400

Dividend paid                                                                         -$1,400

Net cash flows (used in) / from financing activities          $7,000...(c)

Net increase in cash and cash equivalents                      $49,700...(d)=(a)+(b)+(c)

Cash balance at the beginning of the year                         $40,400

Cash and cash equivalents at the end of the year             $90,100

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answer; capital structure decision;