Reference no: EM132726588
Question - The following information is taken from the 2022 general ledger of Orange Company.
Rent
Rent expense $30,000
Prepaid rent, January 1 5,900
Prepaid rent, December 31 7,400
Salaries
Salaries and wages expense $ 54,000
Salaries and wages payable, January 1 2,000
Salaries and wages payable, December 31 8,000
Sales
Sales revenue $160,000
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 method. (Show your calculations)
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