Question

Ramakrishnan, Inc. reported 2018 net income of $30 million and depreciation of $2,800,000. The top part of Ramakrishnan, Inc.’s 2018 and 2017 balance sheets is listed below (in millions of dollars).

	2018				2017				2018				2017
Current assets:								Current liabilities:
Cash and marketable securities	$	35			$	14		Accrued wages and taxes	$	28			$	23
Accounts receivable		85				80		Accounts payable		80				75
Inventory		152				120		Notes payable		75				70
Total	$	272			$	214		Total	$	183			$	168

Calculate the 2018 net cash flow from operating activities for Ramakrishnan, Inc. (Enter your answer in dollars not in millions.)

Answer 1

2018 net cash flow from operating activities for Ramakrishnan, Inc

Ramakrishnan, Inc.
Statement of Cash Flows (Partial)
	Amount ($)	Amount ($)
Cash flows from operating activities;
Net Income		30,000,000
Adjustments to reconcile net income to Net cash provided by operating activities
Add: Depreciation Expenses	2,800,000
Less: Increase in Accounts Receivables	-5,000,000
Less: Increase in Inventories	-32,000,000
Add: Increase in Accrued Wages & Taxes	5,000,000
Add: Increase in Accounts Payable	5,000,000
Add: Increase in Notes Payables	5,000,000	-19,200,000
Net cash provided by operating activities		10,800,000

“Hence, the net cash provided by operating activities will be $10,800,000”