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

Account Title Year $2$ Year $1$

Unearned revenue $ $7,500$ $ $3,800$

Prepaid rent $1,5102,510$

During the year, $$85,000$ of unearned revenue was recognized as having been earned. Rent expense for Year $2$ was $$19,000.$

Required

Prepare the operating activities section of the statement of cash flows assuming the direct approach is used.The following accounts and corresponding balances were drawn from Walton Company's Year $2$ and Year $1$ year$-$end balance sheets.

During the year, $$85,000$ of unearned revenue was recognized as having been earned. Rent expense for Year $2$ was $$19,000.$

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.