Final answer:
The net cash provided by operating activities for Lindsay Corporation in 2018 was $4,560,000.
Step-by-step explanation:
The net cash provided by operating activities can be calculated using the indirect method by adjusting net income for non-cash expenses and changes in working capital.
In this case:
- Add back depreciation and amortization: $1,200,000 + $240,000 = $1,440,000
- Subtract the increase in accounts receivable: $420,000
- Add the increase in accounts payable: $540,000
- Net cash provided by operating activities = Net income + Depreciation & Amortization - Increase in accounts receivable + Increase in accounts payable = $3,000,000 + $1,440,000 - $420,000 + $540,000 = $4,560,000
Therefore, the correct answer is (a) $4,560,000.