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 |