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If Net Income is 77 million dollars, depreciation is 13 million dollars, and deferred taxes are 2 million dollars, what is the cash flow from operating activities?

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Final answer:

The cash flow from operating activities is calculated by starting with net income and then adjusting for non-cash transactions and changes in working capital. In this case, it would be $92 million.

Step-by-step explanation:

To calculate the cash flow from operating activities, you'll need to adjust the net income by adding back non-cash expenses such as depreciation and adjusting for changes in working capital like deferred taxes. The formula would look like this:

Cash Flow from Operating Activities = Net Income + Depreciation + Deferred Taxes

Using the numbers provided in the question:

Cash Flow from Operating Activities = $77 million + $13 million + $2 million = $92 million.

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