It's a good thing that you are bothering about this. It's always good to keep functions dedicated to a single conceptual purpose, and reasonably short.
The body of a function is structured as either:
- A sequence of actions.
- A loop.
- A conditional branching.
If you can think of what the function is doing as a sequence of actions, then use the sequence of statements, i.e. the first method.
If the way you explain what the function does makes you realize that some step is actually part of a greater step, then structure those steps accordingly, one inside the other.