The operating activities section of Bernstein Company€™s cash flow statement is reported below.

Required
What does this information reveal about why cash flow from operations has decreased by 50% over the three-year period? Be specific and explain the basis for yourconclusions.

In millions) Net income Depreciation and amortization Special and nonrecurring items Changes in current assets and liabilities: 2004 $ 391 258 2003 $ 455 247 2002 $467 223 (102) (73) Accounts receivable Inventories Accounts payable Income taxes Other accrued expenses (112) 15 6 (66) (45) 19 30 26 $524 Cash flow provided by operations S 318 $639