Answer:
$6,500,000
Explanation:
Calculation to determine the 2018 net cash flow from operating activities for Ramakrishnan, Inc.
Cash Flows from Operating Activities
Net income $ 20,000,000
Additions (sources of cash):
Depreciation $1,500,000
Increase in accrued wages and taxes $8,000,000
($43,000,000-$35,000,000)
Increase in accounts payable $9,000,000
($69,000,000-$60,000,000)
Less Increase in accounts receivable ($6,000,000)
($98,000,000-$92,000,000)
Less Increase in inventory ($26,000,000)
($170,000,000-$144,000,000)
Net cash flow from operating activities: $ $6,500,000
Therefore the 2018 net cash flow from operating activities for Ramakrishnan, Inc is $6,500,000
