The records of Amy's Flowers showed Net Loss, $20,000; Depreciation Expense, $31,000; and decrease in Supplies on Hand, $8,000. The amount of Net Cash Flow from Operating Activities using the indirect method is:

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The net cash flow from operating activities using the indirect method starts with the net loss of $20,000, adds back the non-cash expense of depreciation ($31,000), and adjusts for the decrease in supplies on hand ($8,000), which is an operating asset. The calculation is: -$20,000 + $31,000 - $8,000 = $3,000. The negative sign in front of the $8,000 is incorrect in the explanation; it should be added because a decrease in current assets is added back in the indirect method. Correcting this: -$20,000 + $31,000 + $8,000 = $19,000.

The Records of Amy's Flowers Showed Net Loss, $20,000; Depreciation