Answer:
Cash flow from operating activities
Net income                                                      $352,000
<u><em>Adjustment to reconcile net income to </em></u>
<u><em>net Cash flow from operating activities</em></u>
Depreciation expense                                    $26,350
Loss on investment sold                                 $15,500
Decrease account receivable                         $7,750
Decrease current liabilities                            <u>-$26,350</u>
Net cash flow from operating activities                              $348,250
Cash flow from investing activities
Sale of investment                                           $12,100
Purchase of equipment                                 -<u>$89,900</u>
Net cash used investing activities                                       -<u>$77,800</u>
Cash flow from financing activities
Dividend paid                                                  -$66,000  
Net cash used financing activities                                       -<u>$66,000</u>
Net cash increase (decrease)                                              $204,450
Beginning Cash                                                                     <u>$120,900</u>
Ending Cash                                                                          <u>$325,350</u>