Calculate the net cash flow provided by operations

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Cash flows from operations-indirect method The financial statements of Simon Co. include the following items (amounts in thousands):


For the Year


Ended


December 31,

Income Statement

2011

Net income

$420

Depreciation and amortization expense

320



Balance Sheets

2011

2010

Accounts receivable

$125

$170

Inventory

170

150

Accounts payable

80

90

Income taxes payable

50

15

Required:

a. Calculate the net cash flow provided by operations for Simon Co. for the year ended December 31, 2011.

b. Explain why net income is different from the net cash provided by operations.

Reference no: EM13535512

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