Curwen Inc. reported net cash flow from operating activities of $357,500 on its statement of cash flows for the year ended December 31, 2014. The following information was reported in the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method:

Decrease in income taxes payable......... $ 7,700

Decrease in inventories ............ 19,140

Depreciation................. 29,480

Gain on sale of investments.......... 13,200

Increase in accounts payable........... 5,280

Increase in prepaid expenses ........... 2,970

Increase in accounts receivable.......... 14,300

a. Determine the net income reported by Curwen Inc. for the year ended December 31, 2014.

b. Briefly explain why Curwen’s net income is different than net cash flow from operating activities.