For indirect method, below steps have to be followed:
1. start from net income, which is $520,000
2. Add non-cash expenses, i.e. depreciation. 520,000 + 37,000 = $557,000
3. Account for change in assets, i.e. add sources of cash and subtract use of cash. that makes our cash = 557,000 + (-17,000) + (-11,000); negative sign indicates use of cash which reduced accounts payable and increased accounts receivable
i.e net cash flows from operating activities = 557,000 - 17,000 - 11,000
= $529,000
