ModeldrillCash flow from operations
A financial modeling exercise from Modeldrill. Solve it with a live spreadsheet grid in your browser, with Fill right and Fill down, and it is checked the moment you submit.
The task
Net working capital balances are given for each year end, including 2025. Fill the change in working capital (row 8) and cash flow from operations (row 9): net income plus depreciation less the increase in working capital.
What this exercise teaches
Depreciation is added back because it reduced net income without using cash. Working capital works the other way: growing receivables and inventory use cash before it shows up as profit.
A hint if you get stuck
More working capital ties up cash, so an increase is subtracted. In 2029 working capital falls, which adds cash.
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