The following information is taken from the 2012 general ledger of Mathias Company.

The following information is taken from the 2012 general ledger of Mathias Company.

Rent

Rent expense

$ 30,000

Prepaid rent, January 1

5,900

Prepaid rent, December 31

7,400

Salaries

Salaries expense

$ 54,000

Salaries payable, January 1

2,000

Salaries payable, December 31

8,000

Sales

Revenue from sales

$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.

 

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