The following information is taken from the 2010 general ledger of Pierzynski Company.

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

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$ 40,000 Rent Rent expense Prepaid rent, January 1 Prepaid rent, December 31 5,900 9,000 $ 54,000 10,000 8,000 Salaries expense Salaries payable, January 1 Salaries payable, December 31 Salaries $170,000 Sales Revenue from sales Accounts receivable, January 1 Accounts receivable, December 31 16,000 7,000