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Using the table below, explain the difference between net income and cash flow from operating activities for Techno in 2009 and analyze their cash flows for 2008 and 2009. (in thousands) 2009 2008 Net income $ 316,354 $ 242,329 Noncash charges (credits) to income Depreciation and amortization 68,156 62,591 Deferred taxes 15,394 22,814 $ 399,904 $ 327,734 Cash Provided (Used) by Operating Assets and Liabilities: Receivables (288,174) (49,704) Inventories (159,419) (145,554) Other current assets (1,470) 3,832 Accounts payable, accrued liabilities 73,684 41,079 Total Cash Provided by Operations $ 24,525 $ 177,387 Investment activities Additions to plant and equipment (94,1760) (93,136) Other investment activities 14,408 (34,771) Net investment activities ($ 79,768) ($ 127,907) Financing activities Purchases of treasury stock (45,854) (39,267) Dividends paid (49,290) (22,523) Net changes in short-term borrowing 125,248 45,067 Additions to long-term borrowings 135,249 4,610 Repayments of long-term borrowings (250,564) Net financing activities $ 165,353 ($ 262,677) Increase (decrease) in cash $ 110,110 ($ 213,197) Beginning cash balance 78,114 291,311 Ending cash balance $ 188,224 $ 78,114

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