114 Chapter 3 | Measuring Performance: Cash Flow and Net Income Enron Corp. Change in Operating Cash Flows vs. NI 6,000 5,000 4,000 3,000 2,000 1,000 0 12/31/2000 12/31/1999 Net income 12/31/1998 12/31/1997 12/31/1996 I Net cash flows from operating activities Below is the underlying data from Enron's financial statements as originally reported. The ratio of cash flows from operations to net income is at the bottom of the table. Does it seem plausible that the company can have such a large increase in the ratio in 2000? Reported Annual Cash Flow 12/31/2000 12/31/1999 12/31/1998 12/31/1997 12/31/1996 Net income.. $ 979 Net cash flows from operating activities. . CFFO/Net income.. 4,779 4.88 $ 893 1,228 1.38 $ 703 1,640 2.33 $ 105 211 2.01 $ 584 1,040 1.78