Presented Below Is the Operating Activities Section of a Statement

Presented below is the operating activities section of a statement of cash flows for 2014: $\begin{array}{lc}\underline {\text { Operatima activities } }\\\text { Cash collected from customers } & \$ 550,000 \\\text { Cash payments for merchandise } & (150,000) \\\text { Cash payments for operating expenses } & \underline {(275,000) } \\\text { Net cash inflow from operating activities } & \underline {\$ 125,000}\end{array}$ Which method of preparing the operating activities section was used?

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