Answer and Explanation:
The preparation of the operating activities section is presented below:
Net income $409,000
Add: Accounts receivable decrease $37,300
Add: Depreciation expense 46,800
Add: Inventory decrease 44,500
Add Amortization expense 7,700
Less: Prepaid expenses increase -6,900
Less: Gain on sale of plant assets -6,300
Less: Accounts payable decrease -10,000
Add: Salaries payable increase -2,000
Net cash flow from operating activities $524,100
