Question

Cheyenne Corp. had the following transactions during 2017:

1. Issued $220000 of par value common stock for cash.
2. Recorded and paid wages expense of $105600.
3. Acquired land by issuing common stock of par value $88000.
4. Declared and paid a cash dividend of $17600.
5. Sold a long-term investment (cost $5280) for cash of $5280.
6. Recorded cash sales of $704000.
7. Bought inventory for cash of $281600.
8. Acquired an investment in Zynga stock for cash of $36960.
9. Converted bonds payable to common stock in the amount of $880000.

Required:
What is the net cash provided by operating activities?

Answer 1

$316,800

Step-by-step explanation:

Cashflow from Operating activities = Cash sales - Paid wages - Bought Inventory for cash

Cashflow from Operating activities = $704,000 - $105,600 - $281,600

Cashflow from Operating activities = $316,800

So, the net cash provided by operating activities is $316,800