The records of Ashley Boutique showed Net Loss,$25,000; Depreciation Expense,$35,000; and increase in Supplies on Hand,$8,000.The amount of Net Cash Flow from Operating Activities using the indirect method is:

Question

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The net cash flow from operating activities is calculated by adjusting the net loss with non-cash expenses and changes in working capital. Starting with a net loss of $25,000, add back the depreciation expense of $35,000 (a non-cash expense), and subtract the increase in supplies on hand of $8,000 (an increase in current assets reduces cash flow). This results in a net cash flow of $2,000.

The Records of Ashley Boutique Showed Net Loss,$25,000; Depreciation Expense,$35,000;