Presented below is the operating activities section of a statement of cash flows for 2014:

Operating activities:
Net income	$120,000
Add:
Depreciation	10,000
Decrease in accounts receivable	5,000
	$135,000
Deduct:
Decrease in accounts payable	15,000
Net cash inflow from operating activities	$120,000

Which method of preparing the operating activities section was used?

a. Either method.

b. The direct method.

c. Cannot be determined without further information.

d. The indirect method.