| Description |
An analyst gathered the information in Exhibit 1 from a company ’s 2018 financial
statements<br><table style="width:90%;text-align:center">
<caption>Exhibit 1: 2018 Financial Statement (US dollars, millions).</caption>
<tr><th class="left">Balances as of Year Ended 31 December</th><th> 2017</th><th> 2018</th></tr>
<tr><td class="left">Retained earnings </td><td>120 </td><td>145</td></tr>
<tr><td class="left">Accounts receivable</td><td> 38 </td><td>43</td></tr>
<tr><td class="left">Inventory </td><td>45</td><td>48</td></tr>
<tr><td class="left">Accounts payable </td><td>36 </td><td>29</td></tr>
</table><br>In 2018, the company declared and paid cash dividends of USD10 million and
recorded depreciation expense in the amount of USD25 million. The company
considers dividends paid a financing activity. The company’s 2018 cash flow from
operations (in USD millions) was closest to: |