Problem - The following information is taken from the 2007 general ledger of Clifford Company.
Rent Rent Rent expense $ 40,000
Prepaid rent, January 1 5,900
Prepaid rent, December 31 9,000
Salaries Salaries Salaries expense $ 54,000
Salaries payable, January 1 10,000 Salaries payable, December 31 8,000
Sales Sales Revenue from sales $170,000
Accounts receivable, January 1 16,000
Accounts receivable, December 31 7,000
Instructions - In each case, compute the amount that should be reported in the operating activities section of the statement of cash flows under the direct and indirect method.