Question

Blue Spruce Corp. had the following transactions during 2017: 1. Issued $290000 of par value common stock for cash. 2. Recorded and paid wages expense of $139200. 3. Acquired land by issuing common stock of par value $116000. 4. Declared and paid a cash dividend of $23200. 5. Sold a long-term investment (cost $6960) for cash of $6960. 6. Recorded cash sales of $928000. 7. Bought inventory for cash of $371200. 8. Acquired an investment in Zynga stock for cash of $48720. 9. Converted bonds payable to common stock in the amount of $1160000. 10. Repaid a 6-year note payable in the amount of $510400. What is the net cash provided by operating activities? $417600. $672800. $556800. $707600.

Answer 1

$417600

Step-by-step explanation:

The computation of the net cash provided by the operating activities under the direct method is shown below:

= Cash sales - purchase of inventory - wages expense

= $928,000 - $371,200 - $139,200

= $417600

All other items which are given in the question are related to the investing and the financing activities. So, we do not consider in the computation part