Ragg Shop Inc RSI recognized 3 800 of sales revenue on
Ragg Shop, Inc. (RSI), recognized $3,800 of sales revenue on account and collected $2,950 of cash from accounts receivable. Further, RSI recognized $1,200 of operating expenses on account and paid $900 cash as partial settlement of accounts payable.

Required
Based on this information alone:
a. Prepare the operating activities section of the statement of cash flows under the direct method.
b. Prepare the operating activities section of the statement of cash flows under the indirectmethod.
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