The following information is taken from the 2025 general ledger of Preminger Company.

InstructionsIn 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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Rent Salaries Sales Rent expense Prepaid rent, January 1 Prepaid rent, December 31 Salaries and wages expense Salaries and wages payable, January 1 Salaries and wages payable, December 31 Sales revenue Accounts receivable, January 1 Accounts receivable, December 31 $ 30,000 5,900 7,400 $ 54,000 2,000 8,000 $160,000 16,000 7,000