The difference between these two amounts could be due to non-cash charges that appear in the income statements. Some of these non-cash charges could incorporate; depletion, amortization as well depreciation
Work Step by Step
Additionally, expense recorded but unpaid (e.g an increase in accounts payable) and collection of previous recorded sales on credit (i.e. now decreasing accounts payable) also would cause cash provided by operating activities to exceed net income.