Question

Lindsay Corporation had net income for 2021 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
a. $4,440,000.
b. $4,560,000.
c. $4,320,000.
d. $1,680,000.

Answer 1

The correct answer is Option B.

Step-by-step explanation:

The question is asking for net cash flows from operating activities for 2021.

Lindsay Corporation

Statement of cash flows (extract)

Net income $3,000,000

Add Depreciation 1,200,000

Add Amortization of intangibles 240,000

Less Increase in accounts receivable (420,000)

Add Increase in accounts payable 540,000

Net cash flows from operating activities $4,560,000