The following information is taken from the 2017 general ledger of AJ Company.

Sales: Sales Revenue $ 200,000

Accounts receivable, January 1 36,000

Accounts receivable, December 31 10,000

CGS: Cost of goods sold $120,000

Accounts payable, January 1 16,000

Accounts payable, December 31 20,000

Inventory, January 1 26,000

Inventory, December 31 17,000

Rent: Rent expense $ 15,000

Prepaid rent, January 1 4,900

Prepaid rent, December 31 6,000

Salaries: Salaries and wages expense $ 48,000

Salaries and wages payable, January 1 5,000

Salaries and wages payable, December 31 4,000

Instructions

In each case, compute the amount that should be reported in the operating activities section of the statement of cash flows under the direct method.