Zoum Corporation had the following transactions during 2017:
1. Issued $250,000 of par value common stock for cash.
2. Recorded and paid wages expense of $120,000.
3. Acquired land by issuing common stock of par value $100,000.
4. Declared and paid a cash dividend of $20,000.
5. Sold a long-term investment (cost $8,000) for cash of $6,000.
6. Recorded cash sales of $800,000.
7. Bought inventory for cash of $320,000.
8. Acquired an investment in Zynga stock for cash of $42,000.
9. Converted bonds payable to common stock in the amount of $1,000,000.
10. Repaid a 6-year note payable in the amount of $440,000.
What is the net cash provided by financing activities?
A)$(210,000).
B)$790,000.
C)$(1,210,000).
D)$230,000.

Question

Zoum Corporation had the following transactions during 2017:
1.	Issued $250,000 of par value common stock for cash.
2.	Recorded and paid wages expense of $120,000. 
3.	Acquired land by issuing common stock of par value $100,000.
4.	Declared and paid a cash dividend of $20,000. 
5.	Sold a long-term investment (cost $8,000) for cash of $6,000. 
6.	Recorded cash sales of $800,000.
7.	Bought inventory for cash of $320,000.
8.	Acquired an investment in Zynga stock for cash of $42,000.
9.	Converted bonds payable to common stock in the amount of $1,000,000.
10.	Repaid a 6-year note payable in the amount of $440,000.
What is the net cash provided by financing activities?
A)$(210,000).
B)$790,000.
C)$(1,210,000).
D)$230,000.

Quizplus · Accepted Answer

Net cash provided by financing activities = Issuance of common stock + Conversion of bonds payable to common stock - Repayment of note payable - Payment of cash dividends= $250,000 + $1,000,000 - $440,000 - $20,000= $790,000

Zoum Corporation Had the Following Transactions During 2017