Calculating and interpreting cash flow from operations. The following items appear in the financial statements of Bamberger Enterprises, a firm offering IT services for Sarbanes- Oxley compliance, for a year (amounts in thousands):
The changes in the current asset and current liability accounts were as follows:
Other Current Liabilities
a. Compute the amount of cash flow from operations.
b. Comment on the major reasons why cash flow from operations exceeds net income.