The following information was taken from the 20X1 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 20X1.

2. Explain the reasons for the difference between the firm’s net income and its cash flow from operating activities in 20X1.