Answer and Explanation:
The preparation of the operating activities section of the statement of cash flows for 2022 is presented below:
Cash flow from operating activities
Net income reported $189,230
Add: Depreciation expense $38,350
Add: Loss on disposal of plant asset $4,720
Less: increase in accounts receivable of -$14,800
Add: increase in accounts payable $16,380
Less: increase in prepaid expenses -$4,140
Cash flow provided by operating activities $229,740
The positive amount reflects the cash inflow and the negative amount reflects the cash outflow
