(12 points, 3 each on parts a and b, 6 on part c) Last year Flying Tiger Inc. had operating revenues of $41.2 million. Its cost of goods sold and selling expenses amounted to $35.4 million. Depreciation was $3.9 million. There were changes in two working capital accounts: inventory increased by $0.5 million, while accounts payable decreased by $0.4 million. There are no income taxes and no interest expense.

(a) What was Flying Tigers Net Income for the year?

(b) What was Flying Tigers Operating Cash Flow for the year?

(c) Identify each of the individual items that explain the divergence of income from operating cash flow, and explain the intuition for why each of these contributes to the divergence.