Answer and Explanation:
The preparation of the operating activities section is presented below:
Cash flows from operating activities
Net income  $374,000
Adjustments made  
Add: Depreciation  $44,000
add: Amortisation expanses  $7,200
Add: Accounts receivable decrease  $17,100
Add: Inventory decrease  $42,000
Less: Prepaid expense increase  -$4,700
Less: Accounts payable decrease  -$8,200
Add: Wages payable increases  $1,200
Less: Gain on sale of machinery  -$6,000
Net cash provided by operating activities  $466,600