The following information is available for Bernard Corporation for 2019:

Required:

1. Compute the net cash flows from operating activities using the indirect method.

2. What are the causes of the major differences between net income and net cash flow from operating activities?

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Decrease in income taxes payable Increase in notes payable (due 2023) Depreciation expense Loss on disposal of equipment Net income Decrease in accounts receivable Increase in inventory $ 3,870 $185,200 50,000 19,900 Decrease in prepaid rent Increase in salaries payable 4,410 6,450 7,100