Problem

Use the direct method to determine cash flows from operating activitiesThe following accou...

Use the direct method to determine cash flows from operating activities

The following accounts and corresponding balances were drawn from Widjaja Company's 2012 and 2011 year-end balance sheets.

Account Title

2012

2011

Unearned revenue

$6,500

$5,000

Prepaid rent

1,800

2,400

During the year. $68,000 of unearned revenue was recognized as having been earned. Rent expense for 2012 was $15,000.

Required

Based on this information alone, prepare the operating activities section of the statement of cash flows assuming the direct approach is used.

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