Ms. D sold a business that she had operated as a sole proprietorship for 18 years. On date of sale, the business balance sheet showed the following assets:

Accounts receivable$50,750

Inventory 153,600

Furniture and equipment:

Cost 60,000

Accumulated depreciation (48,000)

Leasehold improvements: Cost 24,500

Accumulated amortization (4,900)

The purchaser paid a lump-sum price of $303,750 cash for the business

The sales contract stipulates that the FMV of the business inventory is $170,000, and the FMV of the remaining balance sheet assets equals adjusted tax basis.

Assuming that Ms. Ds marginal tax rate on ordinary income is 35 percent and her rate on capital gain is 15 percent, compute the net cash flow from the sale of her business.

Net Cash Flow ---------------