Calculating and interpreting cash flow from operations The following items appear in the financial statements of Bamberger Enterprises a firm offering IT services for Sarbanes-Oxley compliance, for a year (amounts in thousands):

a. Compute the amount of cash flow from operations.

b. Comment on the major reasons why cash flow from operations exceeds netincome.

5 14,600 (210) (200) (13,900) Sales Depreciation Expense Income Taxes Other Expenses Net Income. 290 Accounts Receivable.. Inventories .... Prepayments.. Accounts Payable. Decrease $780 Decrease .... Decrease 100 .... Increase 90 Other Current Liabilities Decrease 240