Fred Basel, owner of the Mid-East Diner, is confused about the differences between net income and cash flow from operations. His bookkeeper provides you with the following information for 20X3:

A. Operations Information Sales $800,000 Labor 300,000 Cost of food sales 320,000 Depreciation 40,000 Income taxes expense 10,000 Other expenses 110,000 B. Other Information 1. Increase in accounts receivable during 20X3 + $30,000 2. Decrease in accounts payable during 20X3 + $10,000 3. Payment of income taxes in 20X3 + $20,000 4. Wages paid employees in 20X3 + $310,000 Required:

1. Calculate the net income for the Mid-East Diner for 20X3.

2. Calculate the cash flow from operations for the diner for the year.

3. Explain the differences between net income and cash flow from operations for the diner for 20X3.