The following information was taken from the 2017 financial statements of Eiger Corporation, a maker of equipment for mountain and rock climbers:

Net income......................................$100,000

Depreciation.......................................30,000

Increase (decrease) in Accounts receivable...110,000

Inventories........................................(50,000)

Prepaid expenses...................................15,000

Accounts payable..............................(150,000)

Salaries payable....................................15,000

Other current liabilities.........................(70,000)

Required:

1. Calculate Eiger's cash flow from operating activities for 2017.

2. Explain the reasons for the difference between the firm's net income and its cash flow from operating activities in 2017.