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 Cash Accounts receivable Accrued liabilities (for operating expenses) Income taxes payable $ 455,000 160,000 110,000 30,000 12/31/2020 $ 90,000 120,000 80,000 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. 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.