The financial statements of Simon Co. include the following items (amounts in thousands):

Required:

a. Calculate the net cash flow provided by operations for Simon Co. for the year ended December 31, 2020.

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

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For the Year Ended December 31, 2020 Income Statement $840 Net income Depreciation and amortization expense 640 At December 31 Balance Sheets 2020 2019 Accounts receivable $250 $340 Inventory Accounts payable 340 300 160 180 Income taxes payable 100 30