McGown Corp. has the following information: Beginning Inventory (1/1) Ending Inventory (12/31) Raw Materials Inventory $ 21,900 $ 34,300 Work in Process Inventory $ 19,400 $ 21,000 Finished Goods Inventory $ 38,900 $ 21,100 Additional information for the year is as follows: Raw materials purchases $ 108,300 Direct labor $ 84,300 Manufacturing overhead applied $ 81,800 Indirect materials $ 0 Compute the unadjusted cost of goods sold. g

Net Income                   112,400

Depreciation expense 120,000

Gain at disposal (furnishing)   (3200)

Loss at Disposal (equipment)    800

Credit card receivables Increased (680)

Accounts receivable Increased (1,500)

Inventories Increased (1,200)

Prepaid expenses Decreased 800

Accounts payable Decreased (2,100)

Accrued payroll payable Increased 2,400

Taxes payable Decreased (900)

Cashflow from operating       226420

Investing Activities

Sale of furnishing     8,600

Sale of equipment   2,000

Purchase of furnishing (16,800)

Purchase of equipment (24,200)

Cash flow used on investing activities 30,400

Financing Activities

payment to lenders      (54,800)

Cash dividends paid   (122,400)

Cash flow used on financing activities 177,200

Cash balance at Dec 31th 2008 30,840

Cash balance at Dec 31th 2007 12,020

Cashflow generated for the year ended Dec 31th 2008 18,820

Explanation:

From the net income we remove the non-monettary terms

as gain at disposal, loss at disposal and depreciation.

Increase in assets decrease the cash as it was used to acquired

increase of liabilities increase cahs as payment was delayed

the opposite is true when these variables decreases.