The following information was taken from the 2017 financial statements of Zurich Corporation, a maker of fine Swiss watches:

Net income.............................................$(200,000)

Depreciation................................................50,000

Increase (decrease) in Accounts receivable.........(140,000)

Inventories..................................................25,000

Other current assets.......................................10,000

Accounts payable........................................120,000

Accrued payables.......................................(25,000)

Interest payable..........................................50,000

Required:

1. Calculate Zurich'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.