The indirect method adjusts accrual basis net profit or loss for the effects of non-cash transactions. Indirect method relies on necessary additions and subtractions from net profit to find operating cash flows. Indirect method starts with net income and reconciles to net cash provided by operating activities. The direct method shows each major class of gross cash receipts and gross cash payments. The direct method shows all cash receipts and cash payments from operating activities. It shows cash inflows and outflows more clearly, and it is more comprehensible than indirect method. The correct answer is C.