The following information is taken from the 2025 general ledger of Okonedo ASA.

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.

Transcribed Image Text:

Rent Rent expense Prepaid rent, January 1 Prepaid rent, December 31 Salaries Salaries and wages expense Salaries and wages payable, January 1 Salaries and wages payable, December 31 Sales Sales revenue Accounts receivable, January 1 Accounts receivable, December 31 40,000 5,600 9,000 65,000 10,000 8,000 170,000 19,000 7,000