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.