Last year Anderson Corporation reported a cost of goods sold of $120,000. The company's inventory at the beginning of the year was $15,000, and its inventory at the end of the year was $25,000. The prepaid expense account increased by $4,000 between the beginning and end of the year, and the accounts payable account decreased by $6,000. Cost of goods sold adjusted to the cash basis under the direct method would be:.

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?