Texas Instruments primarily develops and manufactures semiconductors for use in technology-based products for various industries. The manufacturing process is capital-intensive and subject to cyclical swings in the economy. Because of overcapacity in the industry and a cutback on spending for technology products due to a recession, semiconductor prices collapsed in Year 1 and commenced a steady comeback between Year 2 and Year 4. Exhibit 3.23 presents a statement of cash flows for Texas Instruments for Year 0 to Year 4.

Required
Discuss the relationship between net income and cash flows from operations and between cash flows from operating, investing, and financing activities for the firm over the five-year period.