The following accounts and corresponding balances were drawn from Vernon Company$$s Year $2$ and Year $1$ year$-$end balance sheets.

Account Title Year $2$ Year $1$

Unearned revenue $ $7,000$ $ $3,900$

Prepaid rent $1,4002,560$

During the year, $$86,000$ of unearned revenue was recognized as having been earned. Rent expense for Year $2$ was $$29,500.$

Required

Prepare the operating activities section of the statement of cash flows assuming the direct approach is used.

Note: Cash outflows should be indicated with minus sign.The following accounts and corresponding balances were drawn from Vernon Company's Year $2$ and Year $1$ year$-$end balance sheets.

During the year, $$86,000$ of unearned revenue was recognized as having been earned. Rent expense for Year $2$ was $$29,500.$

Required

Prepare the operating activities section of the statement of cash flows assuming the direct approach is used.

Note: Cash outflows should be indicated with minus sign.