The following information is taken from the 2022 general ledger of Orange Company.

Rent

Rent expense

$30,000

Prepaid rent, January 1

5,900

Prepaid rent, December 31

7,400

Salaries

Salaries and wages expense

$ 54,000

Salaries and wages payable, January 1

2,000

Salaries and wages payable, December 31

8,000

Sales

Sales revenue

$160,000

Accounts receivable, January 1

16,000

Accounts receivable, December 31

7,000

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. (Show your calculations)