Cash flows from operations-indirect method The financial statements of Simon Co. include the following items (amounts in thousands):
|
For the Year
|
|
Ended
|
|
December 31,
|
|
Income Statement
|
2011
|
|
Net income
|
$420
|
|
Depreciation and amortization expense
|
320
|
|
|
|
Balance Sheets
|
2011
|
2010
|
|
Accounts receivable
|
$125
|
$170
|
|
Inventory
|
170
|
150
|
|
Accounts payable
|
80
|
90
|
|
Income taxes payable
|
50
|
15
|
Required:
a. Calculate the net cash flow provided by operations for Simon Co. for the year ended December 31, 2011.
b. Explain why net income is different from the net cash provided by operations.