The differences in beal inc.'s balance sheet accounts at december 31, 20x10 and 20x9, are presented below:

assets increase (decrease)
cash and cash equivalents $120,000
short-term investments 300,000
account receivable, net -
inventory 80,000
long-term investments (100,000)
plant assets 700,000
accumulated depreciation -
$1,100,000

liabilities and stockholders' equity
accounts payable/accrued liabilities $(5,000)
dividends payable 160,000
short-term bank debt 325,000
long-term debt 110,000
common stock, $10 par 100,000
additional paid-in capital 120,000
retained earnings 290,000
$1,100,000

the following additional information relates to 20x10:

1) net income was $790,000.
2) cash dividends of $500,000 were declared.
3) building costing $600,000, with a carrying amount of $350,000, was sold for $350,000.
4) equipment costing $110,000 was acquired through issuance of long-term debt.
5) a long-term investment was sold for $135,000. there were no other transactions affecting long-term investments. these investments are categorized as available for sale.
6) 10,000 shares of common stock were issued for $22 a share.
7) the short-term investments are classified as trading securities.

in beal's 20x10 statement of cash flows, net cash provided by operating activities was

a) $1,160,000.
b) $1,040,000.
c) $620,000.
d) $705,000.