Shamrock, Inc. reported net income of $1.7 million in 2017. Depreciation for the year was $152,200, accounts receivable decreased $322,900, and accounts payable decreased $297,300. Compute net cash provided by operating activities using the indirect approach. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

To report the net cash using the indirect method for the preparation of the statement of cash flows, we need to adjust the net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.

The depreciation of the year doesn't imply cash, so we have to add that amount to the net income.

As the accounts receivable decreased, we earned money, so we have to add that to the net income.

Accounts payable decreased, so we paid money, we have to substruct that to the net income.

Cash flows from operating activities

Net income 1700000,00

Adjustments for:

Depreciation and amortization 152200,00

Decrease in trade receivables 322900,00

Decrease in trade payables -297300,00

Cash generated from operations 1877800,00

Cash flows from investing activities

Cash flows from financing activities

Net increase in cash and cash equivalents 1877800,00

Cash and cash equivalents at beginning of period 1877800,00

Cash and cash equivalents at end of period 1877800,00