Presented Below Is a Partial Statement of Cash Flows for Santiago

Presented below is a partial statement of cash flows for Santiago Company for 2017.
$\begin{array}{lr}\text { Net income}&\$44.000\\\text { Adjustments to net income:}&\\\text { Add: Depreciation } & 7,000 \\\text { Decrease in accounts receivable } & 12,000 \\\text { Increase in salaries payable } & 5,000 \\\text { Less: Gain on sale of equipment } & (1,000 \\\text { Increase in inventories } & (2,000 \\\text { Decrease in accounts payable } & \underline{(5,000)}\\\text { Net cash inflows from operating activities } & \underline{\$ 60,000}\end{array}$
Mr. Santiago, the president of the company, is puzzled by why the cash from operating activities in the statement presented above is $60,000, as compared to the company's income statement for the same period that shows net income of $44,000. Provide justification why the two amounts might not be equal.