Net income for the year was $29,500. Accounts receivable increased $2,500, and accounts payable increased $5,400. There were no other changes in noncash current assets and liabilities. Under the indirect method, the cash flow from operations is $32,400.

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The indirect method starts with net income and adjusts for changes in balance sheet accounts. The increase in accounts receivable ($2,500) is subtracted because it represents income that has not been collected in cash. The increase in accounts payable ($5,400) is added because it represents expenses that have not been paid in cash. Therefore, the cash flow from operations is $29,500 - $2,500 + $5,400 = $32,400.

Net Income for the Year Was $29,500