Reference no: EM13373247

Question 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.