The accounting records of Reyes Company provided the data below.

Net loss	$20,000
Depreciation expense	10,000
Increase in salaries payable	2,000
Decrease in accounts receivable	3,800
Increase in inventory	4,000
Amortization of patent	870
Decrease in discount on bonds payable	600

Required:

a. Prepare a reconciliation of net income to net cash flows from operating activities.

b. What is the purpose of this reconciliation and the requirements for disclosure? Briefly explain