Cost of goods sold

The changes in Tener Company's balance sheet account balances for last year appear below:

	Increases (Decreases)
Asset and Contra-Asset Accounts:
Cash	$(23,000)
Accounts receivable	$(20,000)
Inventory	$0
Prepaid expenses	$27,000
Long-term investments	$57,000
Property, plant and equipment	$32,000
Accumulated depreciation	$72,000
Liability and Equity Accounts:
Accounts payable	$20,000
Accrued liabilities	$(30,000)
Income taxes payable	$31,000
Bonds payable	$(60,000)
Common stock	$28,000
Retained earnings	$32,200

The company's income statement for the year appears below:

Income Statement
Sales	$920,000
Cost of goods sold	535,000
Gross margin	385,000
Selling and administrative expenses	278,000
Net operating income	107,000
Income taxes	42,800
Net income	$64,200

The company declared and paid $32,000 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 operating activities.

On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be: