The accounting records of Unlucky Company provided the data below.

Net loss	$40,000
Depreciation expense	12,000
Increase in salaries payable	11,000
Increase in accounts receivable	4,000
Decrease in inventory	4,800
Amortization of patent	700
Decrease in premium on bonds	500

Required:

1. Prepare a reconciliation of net loss to net cash flows from operating activities. (Cash flows from operating activities using the indirect method).