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 $1,260,000 880,000 380,000 95,000 $ 285,000 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 $ 467,000 $ 61,000 156,000 118,000 106,000 78,000 28,000 51,000 In addition, the following transactions took place during the year: 1. Common stock was issued for $136,000 in cash. 2. Long-term investments were sold for $68,000 in cash. The original cost of the investments also was $68,000. 3. $98,000 in cash dividends was paid to shareholders. 4. The company has no outstanding debt, other than those payables listed above. 5. Operating expenses include $48,000 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. 2. Prepare the cash flows from operating activities section of Diversified's 2021 statement of cash flows using the indirect method. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 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: Cash received from customers $ 1,222,000 Cash paid for income taxes (118,000) Cash paid for operating expenses (804,000) $ 300,000 Net cash flows from operating activities Cash flows from investing activities: Sale of investments 68,000 68,000 Net cash flows from investing activities Cash flows from financing activities: Issuance of common stock Dividends paid to shareholders 136,000 (98,000) Net cash flows from financing activities Increase in cash Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 38,000 406,000 00 $ 406,000