if we enter into contracts for the sale of services and software or hardware , management evaluates whether each element should be accounted for separately by considering the following criteria : ( 1 ) whether the deliverables have value to the client on a stand-alone basis ; and ( 2 ) whether delivery or performance of the undelivered item or items is considered probable and substantially in our control ( only if the arrangement includes a general right of return related to the delivered item ) . further , for sales of software and services , management also evaluates whether the services are essential to the functionality of the software and has fair value evidence for each deliverable . if management concludes that the separation criteria are met , then it accounts for each deliverable in the transaction separately , based on the relevant revenue recognition policies . generally , all deliverables of our multiple element arrangements meet these criteria and are accounted for separately , with the arrangement consideration allocated among the deliverables using vendor-specific objective evidence of the selling price . as a result , we generally recognize software and hardware sales upon delivery to the customer and services consistent with the policies described herein . further , delivery of software and hardware sales , when sold contemporaneously with services , can generally occur at varying times depending on the specific client project arrangement . delivery of services generally occurs over a period of time consistent with the timeline as outlined in the client contract . there are no significant cancellation or termination-type provisions for our software and hardware sales . contracts for professional services provide for a general right , to the client or us , to cancel or terminate the contract within a given period of time ( generally 10 to 30 days ' notice is required ) . the client is responsible for any time and expenses incurred up to the date of cancellation or termination of the contract . cost of revenues cost of revenues consists primarily of cash and non-cash compensation and benefits , including bonuses and non-cash compensation related to equity awards . cost of revenues also includes the costs associated with subcontractors . third-party software and hardware costs , reimbursable expenses and other unreimbursed project-related expenses are also included in cost of revenues . project-related expenses will fluctuate generally depending on outside factors including the cost and frequency of travel and the location of our clients . cost of revenues does not include depreciation of assets used in the production of revenues which are primarily personal computers , servers , and other information technology related equipment . gross margins our gross margins for services are affected by the utilization rates of our professionals ( defined as the percentage of our professionals ' time billed to clients divided by the total available hours in the respective period ) , the salaries we pay our professionals , and the average billing rate we receive from our clients . if a project ends earlier than scheduled , we retain professionals in advance of receiving project assignments , or if demand for our services declines , our utilization rate will decline and adversely affect our gross margins . gross margin percentages of third-party software and hardware sales are typically lower than gross margin percentages for services , and the mix of services and software and hardware for a particular period can significantly impact our total combined gross margin percentage for such period . in addition , gross margin for software and hardware sales can fluctuate due to pricing and other competitive pressures . 16 selling , general , and administrative expenses selling , general and administrative ( “ sg & a ” ) expenses are primarily composed of sales-related costs , general and administrative salaries , stock compensation expense , recruiting expense , office costs , bad debts , variable compensation costs , and other miscellaneous expenses . we work to minimize selling costs by focusing on repeat business with existing clients and by accessing sales leads generated by our software vendors , most notably ibm , oracle and microsoft , whose products we use to design and implement solutions for our clients . these relationships enable us to reduce our selling costs and sales cycle times and increase win rates through leveraging our partners ' marketing efforts and endorsements . plans for growth and acquisitions our goal is to continue to build one of the leading independent information technology consulting firms by expanding our relationships with existing and new clients and through the continuation of our disciplined acquisition strategy . our future growth plan includes expanding our business with a primary focus on customers in the united states , both organically and through acquisitions . given the economic conditions during 2008 and 2009 we suspended acquisition activity pending improved visibility into the health of the economy . with the return to growth in 2010 , we resumed our disciplined acquisition strategy as evidenced by our acquisitions of kerdock consulting , llc ( “ kerdock ” ) in march 2010 , speaktech in december 2010 , exervio in april 2011 , jcb partners , llc ( “ jcb ” ) in july 2011 , pointbridge in february 2012 , nascent in june 2012 , and northridge in july 2012. we also intend to further leverage our existing offshore capabilities to support our future growth and provide our clients flexible options for project delivery . when analyzing revenue growth by base business compared to acquired companies in the results of operations section below , revenue attributable to base business is defined as revenue from an acquired company that has been owned for a full four quarters after the date of acquisition . story_separator_special_tag 22 critical accounting policies our accounting policies are described in note 2 , summary of significant accounting policies , in the notes to consolidated financial statements . we believe our most critical accounting policies include revenue recognition , accounting for goodwill and intangible assets , purchase accounting , accounting for stock-based compensation , and income taxes . revenue recognition and allowance for doubtful accounts revenues are primarily derived from professional services provided on a time and materials basis . for time and material contracts , revenues are recognized and billed by multiplying the number of hours expended in the performance of the contract by the established billing rates . for fixed fee projects , revenues are generally recognized using an input method based on the ratio of hours expended to total estimated hours . amounts invoiced and collected in excess of revenues recognized are classified as deferred revenues . on many projects we are also reimbursed for out-of-pocket expenses such as airfare , lodging , and meals . these reimbursements are included as a component of revenues . revenues from software and hardware sales are generally recorded on a gross basis considering our role as a principal in the transaction . on rare occasions , we enter into a transaction where we are not the principal . in these cases , revenue is recorded on a net basis . unbilled revenues represent the project time and expenses that have been incurred , but not yet billed to the client , prior to the end of the fiscal period . for time and materials projects , the client is invoiced for the amount of hours worked multiplied by the billing rates as stated in the contract . for fixed fee arrangements , the client is invoiced according to the agreed-upon schedule detailing the amount and timing of payments in the contract . clients are typically billed monthly for services provided during that month , but can be billed on a more or less frequent basis as determined by the contract . if the time and expenses are worked/incurred and approved at the end of a fiscal period and the invoice has not yet been sent to the client , the amount is recorded as unbilled revenue once we verify all other revenue recognition criteria have been met . revenues are recognized when the following criteria are met : ( 1 ) persuasive evidence of the customer arrangement exists ; ( 2 ) fees are fixed and determinable ; ( 3 ) delivery and acceptance have occurred ; and ( 4 ) collectability is deemed probable . our policy for revenue recognition in instances where multiple deliverables are sold contemporaneously to the same customer is in accordance with accounting standards board accounting standards codification ( “ asc ” ) subtopic 985-605 , software – revenue recognition , asc subtopic 605-25 , revenue recognition – multiple-element arrangements , and asc section 605-10-s99 ( staff accounting bulletin topic 13 , revenue recognition ) . specifically , if we enter into contracts for the sale of services and software or hardware , then we evaluate whether each element should be accounted for separately by considering the following criteria : ( 1 ) whether the deliverables have value to the client on a stand-alone basis ; and ( 2 ) whether delivery or performance of the undelivered item or items is considered probable and substantially in our control ( only if the arrangement includes a general right of return related to the delivered item ) . further , for sales of software and services , we also evaluate whether the services are essential to the functionality of the software and we have fair value evidence for each deliverable . if we have concluded that the separation criteria are met , then we account for each deliverable in the transaction separately , based on the relevant revenue recognition policies . generally , all deliverables of our multiple element arrangements meet these criteria and are accounted for separately , with the arrangement consideration allocated among the deliverables using vendor-specific objective evidence of the selling price . as a result , we generally recognize software and hardware sales upon delivery to the customer and services consistent with the policies described herein . further , delivery of software and hardware sales , when sold contemporaneously with services , can generally occur at varying times depending on the specific client project arrangement . delivery of services generally occurs over a period of time consistent with the timeline as outlined in the client contract . there are no significant cancellation or termination-type provisions for our software and hardware sales . contracts for professional services provide for a general right , to the client or to us , to cancel or terminate the contract within a given period of time ( generally 10 to 30 days ' notice is required ) . the client is responsible for any time and expenses incurred up to the date of cancellation or termination of the contract . we may provide multiple services under the terms of an arrangement and we are required to assess whether one or more units of accounting are present . service fees are typically accounted for as one unit of accounting , as fair value evidence for individual tasks or milestones is not available . we follow the guidelines discussed above in determining revenues ; however , certain judgments and estimates are made and used to determine revenues recognized in any accounting period . if estimates are revised , material differences may result in the amount and timing of revenues recognized for a given period . revenues are presented net of taxes assessed by governmental authorities . sales taxes are generally collected and subsequently remitted on all software and hardware sales and certain services transactions as appropriate . 23 allowance for doubtful accounts is based upon specific identification of likely and probable losses . each accounting period , accounts receivable is evaluated

net cash provided by operating activities net cash provided by operating activities for the year ended december 31 , 2012 was $ 39.2 million compared to $ 14.3 million and $ 18.7 million for the years ended december 31 , 2011 and 2010 , respectively . for the year ended december 31 , 2012 , the components of operating cash flows were net income of $ 16.1 million plus non-cash charges of $ 18.5 million and net working capital reductions of $ 4.6 million . the primary components of operating cash flows for the year ended december 31 , 2011 were net income of $ 10.7 million plus non-cash charges of $ 17.6 million , partially offset by investments in working capital of $ 14.0 million . the primary components of operating cash flow for the year ended december 31 , 2010 were net income of $ 6.5 million plus non-cash charges of $ 14.3 million , partially offset by investments in working capital of $ 2.1 million . the increase in cash resulting from operating activities as of december 31 , 2012 is primarily related to the increase in accounts payable and other liabilities and decrease in accounts receivable . accounts payable and other liabilities increased due to having higher accrued software costs and variable compensation liabilities during 2012. our days sales outstanding as of december 31 , 2012 decreased to 75 days compared to 78 and 73 days as of december 31 , 2011 and 2010 , respectively .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```net cash provided by operating activities net cash provided by operating activities for the year ended december 31 , 2012 was $ 39.2 million compared to $ 14.3 million and $ 18.7 million for the years ended december 31 , 2011 and 2010 , respectively . for the year ended december 31 , 2012 , the components of operating cash flows were net income of $ 16.1 million plus non-cash charges of $ 18.5 million and net working capital reductions of $ 4.6 million . the primary components of operating cash flows for the year ended december 31 , 2011 were net income of $ 10.7 million plus non-cash charges of $ 17.6 million , partially offset by investments in working capital of $ 14.0 million . the primary components of operating cash flow for the year ended december 31 , 2010 were net income of $ 6.5 million plus non-cash charges of $ 14.3 million , partially offset by investments in working capital of $ 2.1 million . the increase in cash resulting from operating activities as of december 31 , 2012 is primarily related to the increase in accounts payable and other liabilities and decrease in accounts receivable . accounts payable and other liabilities increased due to having higher accrued software costs and variable compensation liabilities during 2012. our days sales outstanding as of december 31 , 2012 decreased to 75 days compared to 78 and 73 days as of december 31 , 2011 and 2010 , respectively .
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 Suspicious Activity Report : if we enter into contracts for the sale of services and software or hardware , management evaluates whether each element should be accounted for separately by considering the following criteria : ( 1 ) whether the deliverables have value to the client on a stand-alone basis ; and ( 2 ) whether delivery or performance of the undelivered item or items is considered probable and substantially in our control ( only if the arrangement includes a general right of return related to the delivered item ) . further , for sales of software and services , management also evaluates whether the services are essential to the functionality of the software and has fair value evidence for each deliverable . if management concludes that the separation criteria are met , then it accounts for each deliverable in the transaction separately , based on the relevant revenue recognition policies . generally , all deliverables of our multiple element arrangements meet these criteria and are accounted for separately , with the arrangement consideration allocated among the deliverables using vendor-specific objective evidence of the selling price . as a result , we generally recognize software and hardware sales upon delivery to the customer and services consistent with the policies described herein . further , delivery of software and hardware sales , when sold contemporaneously with services , can generally occur at varying times depending on the specific client project arrangement . delivery of services generally occurs over a period of time consistent with the timeline as outlined in the client contract . there are no significant cancellation or termination-type provisions for our software and hardware sales . contracts for professional services provide for a general right , to the client or us , to cancel or terminate the contract within a given period of time ( generally 10 to 30 days ' notice is required ) . the client is responsible for any time and expenses incurred up to the date of cancellation or termination of the contract . cost of revenues cost of revenues consists primarily of cash and non-cash compensation and benefits , including bonuses and non-cash compensation related to equity awards . cost of revenues also includes the costs associated with subcontractors . third-party software and hardware costs , reimbursable expenses and other unreimbursed project-related expenses are also included in cost of revenues . project-related expenses will fluctuate generally depending on outside factors including the cost and frequency of travel and the location of our clients . cost of revenues does not include depreciation of assets used in the production of revenues which are primarily personal computers , servers , and other information technology related equipment . gross margins our gross margins for services are affected by the utilization rates of our professionals ( defined as the percentage of our professionals ' time billed to clients divided by the total available hours in the respective period ) , the salaries we pay our professionals , and the average billing rate we receive from our clients . if a project ends earlier than scheduled , we retain professionals in advance of receiving project assignments , or if demand for our services declines , our utilization rate will decline and adversely affect our gross margins . gross margin percentages of third-party software and hardware sales are typically lower than gross margin percentages for services , and the mix of services and software and hardware for a particular period can significantly impact our total combined gross margin percentage for such period . in addition , gross margin for software and hardware sales can fluctuate due to pricing and other competitive pressures . 16 selling , general , and administrative expenses selling , general and administrative ( “ sg & a ” ) expenses are primarily composed of sales-related costs , general and administrative salaries , stock compensation expense , recruiting expense , office costs , bad debts , variable compensation costs , and other miscellaneous expenses . we work to minimize selling costs by focusing on repeat business with existing clients and by accessing sales leads generated by our software vendors , most notably ibm , oracle and microsoft , whose products we use to design and implement solutions for our clients . these relationships enable us to reduce our selling costs and sales cycle times and increase win rates through leveraging our partners ' marketing efforts and endorsements . plans for growth and acquisitions our goal is to continue to build one of the leading independent information technology consulting firms by expanding our relationships with existing and new clients and through the continuation of our disciplined acquisition strategy . our future growth plan includes expanding our business with a primary focus on customers in the united states , both organically and through acquisitions . given the economic conditions during 2008 and 2009 we suspended acquisition activity pending improved visibility into the health of the economy . with the return to growth in 2010 , we resumed our disciplined acquisition strategy as evidenced by our acquisitions of kerdock consulting , llc ( “ kerdock ” ) in march 2010 , speaktech in december 2010 , exervio in april 2011 , jcb partners , llc ( “ jcb ” ) in july 2011 , pointbridge in february 2012 , nascent in june 2012 , and northridge in july 2012. we also intend to further leverage our existing offshore capabilities to support our future growth and provide our clients flexible options for project delivery . when analyzing revenue growth by base business compared to acquired companies in the results of operations section below , revenue attributable to base business is defined as revenue from an acquired company that has been owned for a full four quarters after the date of acquisition . story_separator_special_tag 22 critical accounting policies our accounting policies are described in note 2 , summary of significant accounting policies , in the notes to consolidated financial statements . we believe our most critical accounting policies include revenue recognition , accounting for goodwill and intangible assets , purchase accounting , accounting for stock-based compensation , and income taxes . revenue recognition and allowance for doubtful accounts revenues are primarily derived from professional services provided on a time and materials basis . for time and material contracts , revenues are recognized and billed by multiplying the number of hours expended in the performance of the contract by the established billing rates . for fixed fee projects , revenues are generally recognized using an input method based on the ratio of hours expended to total estimated hours . amounts invoiced and collected in excess of revenues recognized are classified as deferred revenues . on many projects we are also reimbursed for out-of-pocket expenses such as airfare , lodging , and meals . these reimbursements are included as a component of revenues . revenues from software and hardware sales are generally recorded on a gross basis considering our role as a principal in the transaction . on rare occasions , we enter into a transaction where we are not the principal . in these cases , revenue is recorded on a net basis . unbilled revenues represent the project time and expenses that have been incurred , but not yet billed to the client , prior to the end of the fiscal period . for time and materials projects , the client is invoiced for the amount of hours worked multiplied by the billing rates as stated in the contract . for fixed fee arrangements , the client is invoiced according to the agreed-upon schedule detailing the amount and timing of payments in the contract . clients are typically billed monthly for services provided during that month , but can be billed on a more or less frequent basis as determined by the contract . if the time and expenses are worked/incurred and approved at the end of a fiscal period and the invoice has not yet been sent to the client , the amount is recorded as unbilled revenue once we verify all other revenue recognition criteria have been met . revenues are recognized when the following criteria are met : ( 1 ) persuasive evidence of the customer arrangement exists ; ( 2 ) fees are fixed and determinable ; ( 3 ) delivery and acceptance have occurred ; and ( 4 ) collectability is deemed probable . our policy for revenue recognition in instances where multiple deliverables are sold contemporaneously to the same customer is in accordance with accounting standards board accounting standards codification ( “ asc ” ) subtopic 985-605 , software – revenue recognition , asc subtopic 605-25 , revenue recognition – multiple-element arrangements , and asc section 605-10-s99 ( staff accounting bulletin topic 13 , revenue recognition ) . specifically , if we enter into contracts for the sale of services and software or hardware , then we evaluate whether each element should be accounted for separately by considering the following criteria : ( 1 ) whether the deliverables have value to the client on a stand-alone basis ; and ( 2 ) whether delivery or performance of the undelivered item or items is considered probable and substantially in our control ( only if the arrangement includes a general right of return related to the delivered item ) . further , for sales of software and services , we also evaluate whether the services are essential to the functionality of the software and we have fair value evidence for each deliverable . if we have concluded that the separation criteria are met , then we account for each deliverable in the transaction separately , based on the relevant revenue recognition policies . generally , all deliverables of our multiple element arrangements meet these criteria and are accounted for separately , with the arrangement consideration allocated among the deliverables using vendor-specific objective evidence of the selling price . as a result , we generally recognize software and hardware sales upon delivery to the customer and services consistent with the policies described herein . further , delivery of software and hardware sales , when sold contemporaneously with services , can generally occur at varying times depending on the specific client project arrangement . delivery of services generally occurs over a period of time consistent with the timeline as outlined in the client contract . there are no significant cancellation or termination-type provisions for our software and hardware sales . contracts for professional services provide for a general right , to the client or to us , to cancel or terminate the contract within a given period of time ( generally 10 to 30 days ' notice is required ) . the client is responsible for any time and expenses incurred up to the date of cancellation or termination of the contract . we may provide multiple services under the terms of an arrangement and we are required to assess whether one or more units of accounting are present . service fees are typically accounted for as one unit of accounting , as fair value evidence for individual tasks or milestones is not available . we follow the guidelines discussed above in determining revenues ; however , certain judgments and estimates are made and used to determine revenues recognized in any accounting period . if estimates are revised , material differences may result in the amount and timing of revenues recognized for a given period . revenues are presented net of taxes assessed by governmental authorities . sales taxes are generally collected and subsequently remitted on all software and hardware sales and certain services transactions as appropriate . 23 allowance for doubtful accounts is based upon specific identification of likely and probable losses . each accounting period , accounts receivable is evaluated

