Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Ramakrishnan, Inc., reported 2015 net income of $50 million and depreciation of

ID: 2817281 • Letter: R

Question

Ramakrishnan, Inc., reported 2015 net income of $50 million and depreciation of $3,000,000. The top part of Ramakrishnan, Inc.’s 2015 and 2014 balance sheets is reproduced below (in millions of dollars).

Calculate the 2015 net cash flow from operating activities for Ramakrishnan, Inc. (Enter your answer in dollars not in millions.)

Ramakrishnan, Inc., reported 2015 net income of $50 million and depreciation of $3,000,000. The top part of Ramakrishnan, Inc.’s 2015 and 2014 balance sheets is reproduced below (in millions of dollars).

Explanation / Answer

Net income $50,000,000 Add:depreciation $3,000,000 Less:increase in AR(89-84)million (5,000,000) Less:increase in inventory(186-128)million (58,000,000) Add:increase in accrued wages and taxes(36-27)million 9,000,000 Add:increase in AP(101-95)million 6,000,000 Net cash flow from operating activities $5,000,000.