Siliconia Manufacturing Ltd. had retained earnings of $400,000 and $50,000 in cash on January 1st, 2018. Net income in 2018 was $200,000 after deducting an amortization expense of $125,000. The non-cash working capital in 2018 are as follow:

Accounts receivable has increased by $10,000,

Inventory has decreased by $5,000.

Prepaid expenses have increased by $ 1000,

Accounts payable has increased by $4500

Tax payable has decreased by $ 3000

In 2018, the company issued additional common shares for $500,000 and borrowed $600,000 from the bank. Paid divided worth of $10,000.

Required:

a. Calculate the cash from/used in the operation. (7 marks)

b. Calculate the cash from/used in the financing activities. (3 marks)