Pro Forma: Income Statement Sales 1,200,000 Operating Expenses 500,000 Cost of goods sold 300,000 Borrowed Fund @ 12% interest rate 2,000,000 Tax rate 35% Depreciation 100,000 Non-Cash charges 80,000 Balance Sheet Present Balance Sheet Pro forma Balance Sheet Items Value Items Value Cash 1,000,000 Cash 1,200,000 Prepaid Expenses 250,000 Prepaid Expenses Unchanged Marketable Securities 500,000 Marketable Securities 470,000 Inventories 835,000 Inventories 876,000 Bank overdraft 212,000 Bank overdraft 200,000 Notes Payables 760,000 Notes Payables 790,000 Unpaid Dividend 285,000 Unpaid Dividend 345,000 Based on the above information calculate the cash flow using the modified accrual forecasting approach.