The following information is taken from the 1997 general ledger of Joan Robinson Company:

\section*{Instructions}
In each of above cases, compute the amount that should be reported in the operating activities section of the statement of cash flows applying the direct method.
Prepare a work sheet.
(SO 6)
\section*{Instructions}

Transcribed Image Text:

Rent Rent expense Salaries Sales Prepaid rent, January 1 Prepaid rent, December 31 Salaries expense Salaries payable, January 1 Salaries payable, December 31 Revenue from sales Accounts receivable, January 1 Accounts receivable, December 31 $ 31,000 5,900 3,000 $ 54,000 5,000 8,000 $180,000 12,000 9,000