A company reported net income of $135 million and cash flow from operations of $110 million. The most likely explanation for net income being larger than cash flow from operations is that the company:

A.Reduced its purchasing activity and inventory levels because of lower demand for its products.

B.Purchased new property,plant,and equipment at the beginning of the year.

C.Took advantage of substantial trade discounts,lowering the balance in accounts payable during the year.