Ramakrishnan Inc Calculate the 2018 Net Cash Flow from Operating Activities for Depreciation

question 67

Multiple Choice

Ramakrishnan Inc. reported 2018 net income of $20 million and depreciation of $1,500,000. The top part of Ramakrishnan, Inc.'s 2017 and 2018 balance sheets is listed as follows (in millions of dollars) .
$$\begin{array}{l}\begin{array} { l l l l l l } \text {assets}&2017&2017&\text {liabilities\&equity}&2017&2018\\\text {currnt assets}&&&\text {current liabilities accured}&&\\\text {cash and marketable securities}&\$15&\$20&\text {wages and taxes}&\$18&\$20\\\text {accounts reciveable}&75&84&\text {accounts payable}&45&50\\\text {inventory}&110&121&\text {notes payable}&40&45\\\text {total}&\$200&\$225&\text {total}&\$103&\$115\\\end{array}\end{array}$$
Calculate the 2018 net cash flow from operating activities for Ramakrishnan, Inc.

• A) $12,500,000
• B) $10,500,000
• C) $8,500,000
• D) $7,100,000

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