The statement of profit or loss of Yu’s Shoes Ltd reported the following condensed information.

Yu’s Shoes statement of financial position contained the following comparative data at 31 March 2015. 

Yu’s Shoes 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.

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Revenues Operating expenses Profit from operations Income tax expense Profit YU'S SHOES LTD Statement of profit or loss for the year ended 31 March 2015 $1160 000 560 000 600 000 180 000 420 000