Answer:
Cash flows from operating activities section 
                                                                   Amount in $   
Net income                                             210,000.00    
Depreciation                                              62,500.00        
Change in Accounts Receivable              -2,400.00
Change in Inventories                              13,500.00  
Change in Prepaid Expenses                 -600.00
Change in Accounts Payable                      3,800.00  
Change in Salaries Payable                    <u>     -750.00</u>
Cash flows from operating activities    <u> 286,050.00</u>    
Explanation:
The operating activities includes net income, depreciation and changes in current assets and current liabilities. The depreciation as a non-cash item is added back in the cash flows statement.
An increase in current assets represents an outflow of cash hence the negative value and vice versa. The increase in current liabilities represents an inflow of cash hence it is positive and vice versa. Below are the changes.
                                           Amount in $   Amount in $   D
ifference
Change in Accounts Receivable  71,000    73,400       (2,400.00)
Change in Inventories                140,000    126,500   13,500.00  
Change in Prepaid Expenses    7,800       8,400      (600.00)
Change in Accounts Payable  62,600    66,400      3,800.00  
Change in Salaries Payable             9,000       8,250      (750.00)