Ramakrishnan Inc Net Cash Flow Calculation for 2024

Ramakrishnan Inc Financial Data

Ramakrishnan Inc reported 2024 net income of $15 million and depreciation of $2,650,000. The top part of Ramakrishnan Inc's 2024 and 2023 balance sheets is reproduced below (in millions of dollars):

  • Current assets:
    • Cash and marketable securities: $20 (2024); $15 (2023)
    • Accounts receivable: $84 (2024); $75 (2023)
    • Inventory: $121 (2024); $110 (2023)
    • Total: $225 (2024); $200 (2023)
  • Current liabilities:
    • Accrued wages and taxes: $19 (2024); $18 (2023)
    • Accounts payable: $51 (2024); $45 (2023)
    • Notes payable: $45 (2024); $40 (2023)
    • Total: $115 (2024); $103 (2023)

Calculation of 2024 Net Cash Flow

To calculate the 2024 net cash flow from operating activities for Ramakrishnan Inc, we can use the formula:

Net Cash Flow = Net Income + Depreciation & Amortization + Changes in Working Capital

Final answer

The net cash flow from operating activities for Ramakrishnan Inc. in 2024 is $30.65 million.

Explanation

The net cash flow from operating activities of Ramakrishnan Inc. for the year 2024 can be calculated by adding the provided components:

  • Net Income: $15 million
  • Depreciation: $2,650,000
  • Changes in Working Capital: $13 million

Therefore, the net cash flow from operating activities is: $15 million + $2.65 million + $13 million = $30.65 million

Calculate the 2024 net cash flow from operating activities for Ramakrishnan. The net cash flow from operating activities for Ramakrishnan Inc. in 2024 is $30.65 million.
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