Question

Lindsay Corporation had net income for 2011 of $3,000,000. Additional information is as follows:

Depreciation of plant assets $1,200,000
Amortization of intangibles 240,000
Increase in accounts receivable 420,000
Increase in accounts payable 540,000
Lindsay's net cash provided by operating activities for 2011 was

a. $4,440,000.
b. $4,560,000.
c. $4,320,000.
d. $1,680,000.

Answer 1

B. $4,560,000.

Step-by-step explanation:

Net income $3,000,000

Cash flow from operating activities:

Depreciation of plant assets $1,200,000

Amortization of intangibles $240,000

Accounts receivable ($420,000)

Increase in accounts payable $540,000

Cash flow from operating activities $1,560,000

Net cash provided by operating activities $4,560,000

Therefore, option B is the answer.