Dear Sir/Madam

please see these pics . question no 8 does have to Require 1 and Required 2 , i almost solved but still showing RED something is missing . please expalin

regards

The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2018, appears below: 4.75 points Service revenue Operating expenses Income before income taxes Income tax expense Net income $ 920,000 710,000 210,000 84,000 $ 126,000 The following balance sheet information also is available: Cash Accounts receivable Accounts payable (operating expenses) Income taxes payable 12/31/18 $284,000 122,000 72,000 11,000 12/31/17 $ 71,000 101,000 61,000 17,000 In addition, the following transactions took place during the year: 1. Common stock was issued for $102,000 in cash. 2. Long-term investments were sold for $51,000 in cash. The original cost of the investments also was $51,000. 3. $81.000 in cash dividends was paid to shareholders. 4. The company has no outstanding debt, other than those payables listed above. 5. Operating expenses include $31,000 in depreciation expense. Required: 1. Prepare a statement of cash flows for 2018 for the Diversified Portfolio Corporation. Use the direct method for reporting operating activities. 2. Prepare the cash flows from operating activities section of Diversified's 2018 statement of cash flows using the indirect method. Answer is not complete. 8 Answer is not complete. Complete this question by entering your answers in the tabs below. 4.75 points Required 1 Required 2 Prepare a statement of cash flows for 2018 for the Diversified Portfolio Corporation. Use the direct method for reporting operating activities. (Amounts to be deducted should be indicated with a minus sign.) DIVERSIFIED PORTFOLIO CORPORATION Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities Collections from customers $ 899,000 Payment of operating expenses (668,000) Payment of income taxes (90,000) $ 141,000 51,000 Net cash flows from operating activities Cash flows from investing activities Sale of investments Net cash flows from investing activities Cash flows from financing activities Proceeds from issue of common stock Payment of dividends 51,000 102,000 (81,000) Net cash flows from financing activities Increase in cash Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 21,000 213,000 71,000 $ 284,000 Required 1 Required 2 > 00 1. Prepare a statement of cash flows for 2018 for the Diversified Portfolio Corporation. Use the direct method for reporting operating activities. 2. Prepare the cash flows from operating activities section of Diversified's 2018 statement of cash flows using the indirect method. 4.75 points Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the cash flows from operating activities section of Diversified's 2018 statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.). DIVERSIFIED PORTFOLIO CORPORATION Statement of Cash Flows (Partial) For the Year Ended December 31, 2018 Cash flows from operating activities Net income $ 126,000 Adjustments for noncash effects Depreciation expense 31,000 Changes in operating assets and liabilities: Increase in accounts receivable (21,000) Increase in accounts payable 11,000 Net cash flows from operating activities $ 147,000 (Required 1 Required 2)