Master Mechanics, Inc. (MMI), recognized \(\$ 1,200\) of sales revenue on account and collected \(\$ 1,100\) of cash from accounts receivable. Further, MMI recognized \(\$ 700\) of operating expenses on account and paid \(\$ 500\) 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 indirect method.