Presented Below Is the Operating Activities Section of the Statement

Multiple Choice

Presented below is the operating activities section of the statement of cash flows for Golden Consulting for 2016: $\begin{array}{lr}\text { Operating activities: }\\\text { Net income } & \$ 92,000 \\\text { Add: Depreciation } & 20,000 \\\text { Decrease in accounts receivable } & 8,000 \\& \$ 120,000 \\\text { Deduct: Decrease in accounts payable } & \$(6,000) \\\text { Net cash inflow from operating activities } & \$ 114,000\end{array}$ Which method of preparing the operating activities section has Golden Consulting used?

A) The direct method.
B) The indirect method.
C) Either method.
D) Cannot be determined without further information.