Question

Ramakrishnan, Inc. reported 2018 net income of $20 million and depreciation of $3,550,000. Ramakrishnan, Inc.’s 2018 and 2017 balance sheets is listed below.

2018 2017 2018 2017 Current assets: Cash and marketable securities Accounts receivable Inventory Total $ 25 100 170 $295 $ 28 94 148 $270 Current liabilities: Accrued wages and taxes Accounts payable Notes payable Total $ 44 76 70 $190 $ 37 70 65 $172

What is the 20108 net cash flow from operating activities?

Net cash value (in dollars not millions)?

Answer 1

2018 net cash flow from operating activities: $ 13,550,000.

Cash flows from Operating Activities
Net Income		$ 20,000,000
Adjustments to reconcile net income to net cash provided by operations
Depreciation expense	$ 3,550,000
Increase in Accounts Receivable	(6,000,000)
Increase in Inventory	(22,000,000)
Increase in Accrued Wages and Taxes	7,000,000
Increase in Accounts Payable	6,000,000
Increase in Notes Payable	5,000,000	(6,450,000)
Net cash flows from Operating Activities		$13,550,000