Presented below is the operating activities section of the statement of cash flows for Kerry Corp. for 2013:

Operating activities:

Cash collected from sales $550 000

Cash payments for inventory (150 000)

Cash payments for operating expenses (275 000)

Net cash inflow from operating activities $125 000

Which method of preparing the operating activities section has Kerry used?

		The indirect method
		Neither method
		Cannot be determined without further information
		The direct method