Shell,IncUses the Indirect Method to Prepare the Statement of Cash

Shell,Inc.uses the indirect method to prepare the statement of cash flows.Refer to the following section of the comparative balance sheet:
$\begin{array}{c} \text { Shell, Inc.}\\ \text { Comparative Balance Sheet}\\ \text { December 31,2018 and 2017}\\\begin{array}{|l|r|r|r|}\hline&2018&2017&\text { Increase/(Decrease) }\\\hline \text { Cash } & \$ 42,000 & \$ 25,000 & \$ 17,000 \\\hline \text { Accounts Receivable } & 32,000 & 55,000 & (23,000) \\\hline \text { Merchandise Inventory } & \underline{180,000} & \underline{123,000} & 57,000 \\\hline \text { Total Assets } & \$ 254,000 & \$ 203,000 & \$ 51,000 \\\hline\end{array}\end{array}$ The change in Accounts Receivable is shown as a negative cash flow in the adjustments to net income.