Analyzing the Statement of Cash Flows

Using the table below, explain the difference between net income and cash flow from operating activities for Techno in 2009 and analyze their cash flows for 2008 and 2009.(in thousands)20092008Net income$ 316,354$ 242,329Noncash charges (credits) to incomeDepreciation and amortization68,15662,591Deferred taxes15,39422,814$ 399,904$ 327,734Cash Provided (Used) by Operating Assets and Liabilities:Receivables(288,174)(49,704)Inventories(159,419)(145,554)Other current assets(1,470)3,832Accounts payable, accrued liabilities73,68441,079Total Cash Provided by Operations$ 24,525$ 177,387Investment activitiesAdditions to plant and equipment(94,1760)(93,136)Other investment activities14,408(34,771)Net investment activities($ 79,768)($ 127,907)Financing activitiesPurchases of treasury stock(45,854)(39,267)Dividends paid(49,290)(22,523)Net changes in short-term borrowing125,24845,067Additions to long-term borrowings135,2494,610Repayments of long-term borrowings(250,564)Net financing activities$ 165,353($ 262,677)Increase (decrease) in cash$ 110,110($ 213,197)Beginning cash balance78,114291,311Ending cash balance$ 188,224$78,114