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At December 31, 20x1, Sammy's Company's balance in its prepaid rent account was $8,000, and $16,000 at December 31, 20x2. On its 20x2 income statement,

At December 31, 20x1, Sammy's Company's balance in its prepaid rent account was $8,000, and $16,000 at December 31, 20x2. On its 20x2 income statement, Sammy reported rent expense in the amount of $24,000. Sammy uses the direct method to prepare its statement of cash flows. How much cash outflow for rent should Sammy report in its statement of cash flows for the year ended 20x2?

$32,000.$16,000.$0.$24,000.

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