2-9. (Statement of Cash Flows). Ramakrishnan, Inc., reported 2018 net income of $15 million and depreciation of
Question:
2-9. (Statement of Cash Flows). 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 reproduced below (in millions of dollars):
Calculate the 2018 net cash flow from operating activities for Ramakrishnan, Inc, (LG 2-4).
Did I miss a step in my calculation?
CURRENT ASSETS
2018
2017
CURRENT LIABILITIES
2018
2017
Cash and Marketable Securities
20
15
Accrued Wages and Taxes
19
18
Accounts Receivable
84
75
Accounts Payable
51
45
Inventory
121
110
Notes Payable
45
40
TOTAL
225
200
TOTAL
115
103
Cash from Operating Activities
2018
Net Income$15,000,000
+Additions
Depreciation$2,650,000
Accrued wages and taxes$1,000,000
Accounts payable$6,000,000
- Subtractions
Accounts Receivable $9,000,000
Inventory$11,000,000
The Net Cash Flow from Operating Activity $4,650,000 (my answer)
Expert Answer:
