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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.

Respuesta :

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Answer:

The correct answer is Option B.

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