Step 0 - the two bridges

Depreciation = ΔAcc. depreciation = 22,000 − 18,000 = 4,000
Dividends = NPAT − ΔRE = 10,500 − (28,000 − 24,000) = 10,500 − 4,000 = 6,500

Statement of retained earnings

Retained earnings balance (31 Dec 2021)	24,000
Net profits after taxes	+10,500
Dividends	(6,500)
Retained earnings balance (31 Dec 2022)	28,000

Step 1 - changes and classification

Account	Change	Class
Cash	+3,000	Use
Accounts receivable	+6,000	Use
Inventory	+3,000	Use
Gross fixed assets	+2,000	Use
Accounts payable	−5,000	Use
Notes payable	+10,000	Source
Accruals	−1,000	Use
Long-term debts	+2,000	Source
Common stock / paid-in capital	0	Neither

Retained earnings is deliberately omitted; totals are ignored; gross fixed assets is used, not net.

Step 2 - summary (must balance)

Inflows: notes payable 10,000 + long-term debts 2,000 + NPAT 10,500 + depreciation 4,000 = 26,500
Outflows: cash 3,000 + AR 6,000 + inventory 3,000 + gross fixed assets 2,000 + AP 5,000 + accruals 1,000 + dividends 6,500 = 26,500 ✔

Step 3 - the statement

Statement of cash flows, year ended 31 Dec 2022
Operating activities
Net profit after taxes	10,500
Depreciation expense	4,000
Increase in accounts receivable	(6,000)
Increase in inventory	(3,000)
Decrease in accounts payable	(5,000)
Decrease in accruals	(1,000)
Cash provided by operating activities (1)	(500)
Investment activities
Increase in gross fixed assets	(2,000)
Cash provided by investment activities (2)	(2,000)
Financing activities
Increase in notes payable	10,000
Increase in long-term debts	2,000
Dividends paid	(6,500)
Cash provided by financing activities (3)	5,500
Change in cash (1+2+3)	3,000

Check: cash rose 21,000 → 24,000 = +3,000. ✔