Problem - The following information is taken from the 2007 general ledger of Clifford Company.

Rent Rent Rent expense $ 40,000

Prepaid rent, January 1 5,900

Prepaid rent, December 31 9,000

Salaries Salaries Salaries expense $ 54,000

Salaries payable, January 1 10,000 Salaries payable, December 31 8,000

Sales Sales Revenue from sales $170,000

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 and indirect method.