The following information is available for Cornelius Inc.:

Required:
1. Compute the net cash flows from operating activities using the indirect method.
2. Explain why Cornelius was able to report net cash flow from operating activities that was higher than net income.
3. What could the difference between net income and cash flow from operating activities signal to financial statement users?

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Selected Income Statement Information Net income Depreciation expense Amount $41,000 9,200 Selected Balance Sheet Information Accounts receivable Inventory Accounts payable Beginning Baac Ending Balance $21,200 45,800 23,700 $27,950 40,125 32,600