. The following cash flows were reported by Techno Inc. in 2008 and 2007. (In thousands) Net income 2008 $316,354 2007 $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 Other investment activities Net investment activities (94,176) (93,136) 14,408 (34,771) ($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 borrowings 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

(a) Explain the difference between net income and cash flow from operating activities for Techno in 2008.

(b) Analyze Techno Inc.'s cash flows for 2008 and 2007.