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Ramakrishnan Inc Calculate the 2013 Net Cash Flow from Operating Activities for Depreciation

Question 93

Multiple Choice

Ramakrishnan Inc. reported 2013 net income of $20 million and depreciation of $1,500,000. The top part of Ramakrishnan, Inc.'s 2012 and 2013 balance sheets is listed as follows (in millions of dollars) .  2012  2013  Assets  Cash and marketable securities  securities $15$20 Accounts receivable 7584 Inventory 110121 Total $200$225 2012  2013  Liabilities & Equity  Current liabilities  Accrued wages and taxes $18$20 Accounts payable 4550 Notes payable 4045 Total $103$115\begin{array}{l}\begin{array} { l } &\text { 2012 }&\text { 2013 }\\\text { Assets }\\\text { Cash and marketable}\\\text { securities }\\\text { securities } & \$ 15 & \$ 20 \\\text { Accounts receivable } & 75 & 84 \\\text { Inventory } & 110 & 121 \\ \text { Total } & \$ 200 & \$ 225\end{array}\begin{array} { l } &\text { 2012 }&\text { 2013 }\\\text { Liabilities \& Equity }\\\text { Current liabilities }\\\text { Accrued wages and taxes } & \$ 18 & \$ 20 \\\text { Accounts payable } & 45 & 50 \\\text { Notes payable } & 40 & 45 \\\\ \text { Total } & \$ 103 & \$ 115\end{array}\end{array}
Calculate the 2013 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

Correct Answer:

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