Why does the Cash Flow and Income Statements seem to give the opposite outlook? Ex: Year 8 Positive Net Income, Negative cash flow, Year 9 Negative Net Income, Positive Cashflow.

Which is more reliable?

Exhibit 3.31 BTB Electronics Inc. Income Statements (amounts in thousands) (Problem 3.30) Year Ended December 31: Year 9 Year 8 Sales Cost of goods sold Selling and administrative expenses Interest expense Income tax expense Net Income Dividends on preferred stock Net Income Available to Common $ 11,960 (11,031) (3,496) (452) 328 $ (2,691) (8) $ (2,699) $ 22,833 (16,518) (4,849) (459) (590) $ 417 (12) $ 405 BTB, Inc. Worksheet for Statement of Cash Flows for Year 8 (amounts in thousands) (Problem 3.30) Investing Financing Balance Sheet (Increase) Decrease in Changes Operations Assets Accounts Receivable............ $ (168) $ (168) Inventories......... (632) (632) Prepayments. (154) (154) Property, Plant, and Equipment (Net) ........ (792) 641 Other Assets ........ (366) 25 $ (1,433) (391) (769) $ 220 (299) 2,339 Increase (Decrease) in Liabilities and Shareholders' Equities Accounts Payable....... .... $ (769) Notes Payable to Banks 220 Other Current Liabilities. (299) Long-Term Debt ........ 2,339 Deferred Income Taxes........ (37) Preferred Stock.......... 289 Common Stock........... 2 Additional Paid-in Capital ... 7 Retained Earnings ....... 405 Changes in Cash....... $ 45 (37) 289 2 7 (12) $ 2,845 417 $ (976) $ (1.824) BTB, Inc. Worksheet for Statement of Cash Flows for Year 2 (amounts in thousands) (Problem 3.30) Operations Investing Financing Balance Sheet Changes (Increase) Decrease in Assets Accounts Receivable........... $ 1,391 Inventories.......... 872 Prepayments ..... 148 Property, Plant, and Equipment (Net). ......... 571 Other Assets ......... 103 $ 1,391 872 148 $ 625 40 (54) 63 $ (13) $ 2,182 (82) (2,608) Increase (Decrease) in Liabilities and Shareholders' Equity Accounts Payable............... $ (13) Notes Payable to Banks 2,182 Other Current Liabilities. (82) Long-Term Debt ........... (2,608) Deferred Income Taxes........ 24 Preferred Stock......... Common Stock... Additional Paid-in Capital .... 3 Retained Earnings ....... (2,699) Changes in Cash.............. $ (108) 24 (2,691) $ 314 3 (8) $ (431) $