Question

Ramakrishnan, Inc. reported 2018 net income of $15 million and depreciation of $2,650,000. The top part of Ramakrishnan, Inc.'s 2018 and 2017 balance sheets is listed below (in millions of dollars). 2018 2017 Current assets: Cash and marketable Securities Current liabilities: Accounts receivable Accrued wages and taxes $ 10 $ 18 Inventory Accounts payable Notes payable Total Total $123 Calculate the 2018 net cash flow from operating activities for Romakuishnan, Inc. (Enter your answer in dollars not in millions.) Net cash flow

Answer 1

Description	Amount
Cash flow from operating activity
Net Income before tax	$           15.00
Add non-cash expense
Depreciation	$             2.65
Adjustment for change in working capital
Change in AR	$           (9.00)
Change in inventory	$         (11.00)
Change in Notes payables	$           (3.00)
Change in AP	$             6.00
Change in Accrued Liability	$             1.00
Cash flow from operating activity	$             1.65

Solution 2:

Description	Amount
Cash flow from operating activities	P
Cash flow from investing activities	$     (4,364,000)
Cash flow from financing activities	$     (5,880,000)
Cash generated during the year	(P-10244000)
Cash account
Closing balance	$       1,742,000
Beginning balance	$     (1,615,000)
Cash generated during the year	$          127,000
(P-10244000)=	$          127,000
Cash flow from operating activities	$     10,371,000