J.Jill is a women's clothing retailer.The company started as a mail order company and has expanded into mall department stores.The company now receives approximately half of its revenues from mail order and half from retail outlets.Over the time period 2010 to 2012,sales increased approximately 25%.
Discuss the relationship between net income,working capital from operations,and cash flow from operations,and between cash flows from operating,investing,and financing activities over the three-year period.

\text { CASH FLOW STATERENT \{in thousands }

\begin{array}{lrrr}\text { Cash from operations } & 12 / 25 / 2012 & 12 / 27 / 2011 & \mathbf{1 2 / 2 8 / 2 0 1 0} \\\text { Net income } & 8,706 & 7,025 & 18,434 \\\text { Depreciation \& amortization } & 18,663 & 16,131 & 12,672 \\\text { Net increase (decrease) in assets \& liab. } & 6,696 & 26,659 & 10,623 \\\text { Other adjustments, net } & 1,396 & 924 & 3,996 \\\text { Net cash provided by (used in) operations } & \mathbf{3 5 , 4 6 1} & \mathbf{5 0 , 7 3 9} & \mathbf{4 5 , 7 2 5}\end{array}

\begin{array}{l}\text { Cash from investments }\\\begin{array}{lrrr}\text { (Increase) decrease in property \& plant } & -28,784 & -34,265 & -34,734 \\\text { Other cash inflow (outflow) } & -35,434 & -1,143 & -2,454 \\\text { Net cash provided by (used in) investing } & -\mathbf{6 4 , 2 1 8} & \mathbf{- 3 5 , 4 0 8} & -\mathbf{3 7 , 1 8 8}\end{array}\end{array}

\begin{array}{l}\text { Cash from financing }\\\begin{array}{lrrr}\text { Issuances (purchases) of equity shares } & 3,142 & 870 & 7,800 \\\text { ncrease (decrease) in borrowings } & -1,706 & -1,648 & -1,755 \\\text { Net cash provided by (used in) financing } & \mathbf{1 , 4 3 6} & \mathbf{- 7 7 8} & \mathbf{6 , 0 4 5} \\& - & - & 14,582 \\\text { Net change cash \& cash equivalents } & -27,321 & 14,553 & 30,152 \end{array}\end{array}

\begin{array}{llll}\text { Cash and cash equivalents at start of year } & 59,287 & 44,734 & 30,152 \\\text { Cash and cash equivalents at year end } & 31,966 & 59,287 & 44,734\end{array}

Which of the Following Is Not One of the Reasons

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