Answer:
Net cash provided by operating activities for 2018 was $4,560,000
Explanation:
The net cash provided by operating activities can be computed by preparing the operating activities of the statement of cash flow as shown below:
Net income for the year $3,000,000
add depreciation $1,200,000
add amortization $240,000
deduct increase in accounts receivable ($420,000)
add increase in accounts payable $540,000
net cash provided by operations $4,560,000
The cash provided by operating activities is $4,560,000
The rationale for deducting increase in accounts receivable is that the increase deprived Lindsay corporation cash of $420,000.
