Question

If Net Income is 97 million dollars, depreciation is 33 million dollars, and deferred taxes are 22 million dollars, what is the cash flow from operating activities?

Answer 1

To find the cash flow from operating activities, add back non-cash expenses (depreciation) and changes in working capital (deferred taxes) to the net income, resulting in a total of $152 million.

Step-by-step explanation:

The student's question is about calculating cash flow from operating activities given certain financial figures. To achieve this, we must adjust the Net Income by adding back non-cash expenses like depreciation and changes in working capital like deferred taxes. Thus, the cash flow from operating activities would be calculated as follows:

• Net Income: $97 million
• Add back Depreciation: $33 million
• Add back Deferred Taxes: $22 million

The total cash flow from operating activities is: $97 million + $33 million + $22 million = $152 million.