Sterling Sails reported net income of $35,000;depreciation expenses of $20,000;an increase in Accounts Payable of $2,000;and an increase in current notes receivable of $3,000.Net Cash Flows from operating activities under the indirect method is:

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Net cash flows from operating activities is calculated by adjusting net income for non-cash expenses and changes in working capital. Start with net income of $35,000, add back depreciation of $20,000, add the increase in Accounts Payable of $2,000, and subtract the increase in notes receivable of $3,000. This results in $35,000 + $20,000 + $2,000 - $3,000 = $54,000.

Sterling Sails Reported Net Income of $35,000;depreciation Expenses of $20,000;an