3. An analyst gathered the information in Exhibit 1 from a company’s 2018 financial statements:

Exhibit 1: 2018 Financial Statement (US dollars, millions)

Balances as of Year Ended 31 December 2017 2018 Retained earnings 120 145 Accounts receivable 38 43 Inventory 45 48 Accounts payable 36 29 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:

A. 25.

B. 45.
C. 75.