Calculating and interpreting cash flows. Yahoo, Inc., is an Internet service provider. The changes in its balance sheet accounts for two recent years appear below (amounts in thousands):

a. Prepare columnar work sheets for the statement of cash flows for Year 8 and Year 9. Yahoo, Inc., did not declare or pay dividends during either year. It sold marketable securities during Year 9 at no gain or loss.

b. Prepare a statement of cash flows for Year 8 and Year 9. The balance in cash was \(\$ 33,547\) at the end of Year 8 and \(\$ 62,538\) at the end of Year 9.

c. Discuss the relation between net income and cash flow from operations and the relation between cash flow from operating, investing, and financing activities during the two years.

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Cash Marketable Securities (current asset) Accounts Receivable Prepayments.... Year 8 $ 28,250 Increase 60,689 Increase 4,267 Increase 384 Increase 3,155 Increase 552 Increase Year 9 $28,991 Increase 32,917 Decrease 5,904 Increase 5,509 Increase 14,930 Increase 2,554 Increase Property, Plant, and Equipment (at cost) Accumulated Depreciation .. Investments in Securities (noncurrent asset) ... 10,477 Increase 9,053 Increase Accounts Payable Other Current Liabilities Common Stock ... Retained Earnings. 1,086 Increase 6,447 Increase 103,796 Increase 4,659 Decrease 3,605 Increase 11,598 Increase 36,980 Increase 23,267 Decrease