Kyocera is a Japanese telecommunications company that publishes IFRS-based financial statements. On its March 31, 2009, statement of cash flows in the operating section it reported a “provisions for doubtful accounts” of 671 million yen, and a “decrease in receivables” of 75,866 million yen.
a. Why were these two amounts reported in the operation section of the statement of cash flows?
b. How were these two amounts treated in the reconciliation of net income with net cash provided by operating activities?
c. During 2009 net cash from operating activities was more than 68,288 million yen higher than net income. Explain why.