Answer and Explanation:
The Preparation of cash flows from operating activities section using the direct method is shown below:-
                                   Splish Brothers Inc.
                Statement of Cash Flows using Direct method
                            For the Year ended 2020
Particulars                                                                        Amount
Cash Flows from operating activities:
Cash collection from:-  
Customers
($49,300 + $189,500)                       $238,800
Dividend Revenue                            $17,900                  $256,700
Less: Cash payments for
Interest                                              ($10,400)
Income Taxes                                    (15,000)
Salaries and wages                           (57,700)
Operating Expenses                        ($28,400)
Cash payment to
Suppliers for Merchandise               ($115,400)              $226,900
Net Cash provided by operating activities                     $29,800
Since the cash payment reflects the cash outflow so this items would be represented in a negative sign and the cash collections reflects the cash inflow so this item would be represented in a positive sign