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,

Net cash by operating activities is $1,877,800.

Explanation:

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 amortization152200,00  

Decrease in trade receivables322900,00  

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

answer(b) revenue account which increases;

answertaxable income;