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	$	(13,000	)
Accounts receivable	$	(10,000	)
Inventory	$	0
Prepaid expenses	$	17,000
Long-term investments	$	47,000
Property, plant and equipment	$	22,000
Accumulated depreciation	$	62,000
Liability and Equity Accounts:
Accounts payable	$	10,000
Accrued liabilities	$	(20,000	)
Income taxes payable	$	21,000
Bonds payable	$	(30,000	)
Common stock	$	18,000
Retained earnings	$	18,200

The companys income statement for the year appears below:

Income Statement
Sales	$	820,000
Cost of goods sold		485,000
Gross margin		335,000
Selling and administrative expense		268,000
Net operating income		67,000
Income taxes		26,800
Net income	$	40,200

The company declared and paid $22,000 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:

Multiple Choice

• $840,000

• $882,200

• $830,000

• $619,000