There are two methods for reporting cash flows from operating activities: the direct and the indirect methods. Below are prepared under the direct method. Use the following information and calculate the net cash flow from operating activities under the indirect method.

Increase in accounts receivable $2,000

Increase in inventories 1,500

Decrease in accounts payable 400

Depreciation of fixed assets 2,100

Increase in accrued expenses payable 1,500

Net income 2,000

Direct method:

Cash received from customers $5,600

Cash payments for merchandise (1,100)

Cash payments for operating expenses (1,700)

Cash payments for interest (500)

Cash payment for income taxes (600)

Net cash flow from operating activities 1,700

Indirect method: