Consider the following income statement and non-cash working capital account information of Yahk

Ltd. (Yahk). Assume Yahk uses IFRS.

Required:
a. Calculate cash from operations for Yahk using the indirect method and prepare the cash from operations section of Yahk’s cash flow statement. State any accounting choices you make.
b. Explain why cash from operations is different from net income in2017.

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Yahk Ltd. Non-cash Working Capital Accounts As of December 31 2016 2017 60,000 187,500 25,000 2017 2016 Accounts receivable Inventory Prepaids 47,500 Accounts payable $130,000 S117,500 30,000 25,000 32,500 22,500 40,000 23,750S 217,500 Wages payable 20,000 Taxes payable Interest payable Total current operating Total current operating assets $272,500 S285,000 liabilities Yahk Ltd Income Statement For the Year Ended December 31, 2017 $216,250 $205,000 Sales Cost of goods sold Gross margin Wage expense Interest expense Depreciation expense Other expense Loss on sale of equipment lax expense Net income $815,000 250,000 565,000 150,000 35,000 50,000 65,000 25,000 60,000 $180,000