The Supplies balance has decreased during the year.How would this affect the Statement of Cash Flows operations section under the indirect method?

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The Supplies balance has decreased during the year, which means that the company has used more supplies than it has purchased. This will result in a decrease in the Supplies asset account and an increase in the Supplies expense account. Under the indirect method, the Supplies expense account is added back to net income to arrive at cash flow from operations.

The Supplies Balance Has Decreased During the Year