Problem 4-9 (Algo) Statement of cash flows (LO4-8] The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2021, appears below: Service revenue Operating expenses Income before income taxes Income tax expense Net income $1,220,000 900,000 320,000 80,000 $ 240,000 The following balance sheet information also is available: 12/31/2021 12/31/2020 Cash $ 455,000 $ 90,000 Accounts receivable 160,000 120,000 Accrued liabilities (for operating expenses) 110,000 80,000 Income taxes payable 30,000 55,000 In addition, the following transactions took place during the year: 1. Common stock was issued for $140,000 in cash. 2. Long-term investments were sold for $70,000 in cash. The original cost of the investments also was $70,000. 3. $100,000 in cash dividends was paid to shareholders. 4. The company has no outstanding debt, other than those payables listed above. 5. Operating expenses include $50,000 in depreciation expense. Required 1 Required 2 Prepare a statement of cash flows for 2021 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, 2021 Cash flows from operating activities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Increase in cash Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 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 2021 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, 2021 Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities