The following information is available for Bernard Corporation:
Net income ................. $206,000
Decrease in accounts receivable ......... 4,900
Increase in inventory ............ 15,300
Decrease in prepaid rent ............ 2,100
Increase in salaries payable .......... 14,400
Increase in income taxes payable ....... 11,200
Increase in notes payable .......... 20,000
Depreciation expense ............ 42,000
Loss on sale of equipment ........... 5,000

Required:
1. Prepare 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?