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
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.
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