104-8 The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2021, appears below: Service revenue $ 900,000 700.000 200,000 Operating expenses Income before income taxes Income tax expense Net income 50,000 $ 150,000 The following balance sheet information also is available: Page 222 12/31/2021 12/31/2020 Cash $ 305,000 120,000 70.000 $ 70,000 100,000 Accounts receivable 60,000 Accrued liabilities (for operating expenses) Income taxes payable 10,000 15,000 In addition, the following transactions took place during the year: 1. Common stock was issued for $100,000 in cash. 2. Long-term investments were sold for $50,000 in cash. The original cost of the investments also was $50,000. 3. $80,000 in cash dividends was paid to shareholders. 4. The company has no outstanding debt, other than those payables listed above. 5. Operating expenses include $30,000 in depreciation expense. Required: 1. Prepare a statement of cash flows for 2021 for the Diversified Portfolio Corporation. Use the direct method for reporting operating activities. Use a format similar to the one in the Concept Review Exercise at the end of Part B of this chapter. 2. Prepare the cash flows from operating activities section of Diversified's 2021 statement of cash flows using the indirect method. Use a format similar to the one in the Concept Review Exercise at the end of Part B of this chapter