Required:

1. Prepare a statement of cash flows for 2021 for the Durango Corporation. Use the direct method for reporting operating activities.

Group Quiz #2 Version C The Durango 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 $1,575,000 1,225,000 350,000 87,500 $262,500 The following balance sheet information also is available: Cash Accounts receivable Accrued liabilities (for operating expenses) Income taxes payable 12/31/2021 12/31/2020 $533,750 $122,500 210,000 175,000 122,500 105,000 17,500 26,250 In addition, the following transactions took place during the year: 1. Common stock was issued for $175,000 in cash. 2. Long-term investments were sold for $87,500 in cash. The original cost of the investments also was $87,500. 3. $140,000 in cash dividends was paid to shareholders. 4. The company has no outstanding debt, other than those payables listed above. 5. Operating expenses include $52,500 in depreciation expense