Direct versus indirect method of determining cash flows from operating activities Security Services, Inc. (SSI), recognized $2,400 of sales revenue on account and collected $1,900 of cash from accounts receivable. Further, SSI recognized $900 of operating expenses on account and paid $400 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.