The changes in Northrup Corporation's balance sheet account balances for last year appear below:

	Increases (Decreases)
Asset and Contra-Asset Accounts:
Cash and cash equivalents	$ (14,000)
Accounts receivable	$ (11,000)
Inventory	$ 0
Prepaid expenses	$ 18,000
Long-term investments	$ 48,000
Property, plant, and equipment	$ 23,000
Accumulated depreciation	$ 63,000
Liability and Equity Accounts:
Accounts payable	$ 11,000
Accrued liabilities	$ (21,000)
Income taxes payable	$ 22,000
Bonds payable	$ (40,000)
Common stock	$ 19,000
Retained earnings	$ 19,600

The companys income statement for the year appears below:

Income Statement
Sales	$ 830,000
Cost of goods sold	490,000
Gross margin	340,000
Selling and administrative expense	269,000
Net operating income	71,000
Income taxes	28,400
Net income	$ 42,600

The company declared and paid $23,000 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.

On the statement of cash flows, the sales adjusted to a cash basis would be:

$895,600

$852,000

$841,000

$632,000