The statement of profit or loss of Nguyen and Tran Ltd reported the following condensed information. 

Nguyen and Tran’s statement of financial position contained the following comparative data at 31 March. 

Nguyen and Tran Ltd has no depreciable assets and no inventory. Accounts payable pertain to operating expenses. 

Required

(a) Prepare the operating activities section of the statement of cash flows using the direct method.

(b) Prepare the operating activities section of the statement of cash flows using the indirect method.

(c) There are two methods of presenting cash provided (used) by operating activities: the direct method and the indirect method. Discuss the differences between the two methods.

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Revenues Operating expenses NGUYEN AND TRAN LTD Statement of profit or loss for the year ended 31 March 2017 Income from operations before income tax Income tax expense Profit $430 000 280 000 150 000 47 000 $103000