Compute Sagaworth's net cash flow from operating activities under the direct method. Net Loss $380,000. Depreciation expense 150,000, amortizaiton expense 25,000, account receivable 200,000, Inventory 140,000, prepaid expenses 40,000, accounts payable 190,000, accrued liabilities 50,000 and taxes payable 10,000. include and since the net income is loss which way do the signs go. Not sure what is added an subtracted. .