The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2021, appears below: Service revenue $1,120,000 Operating expenses 810,000 Income before income taxes 310,000 Income tax expense 77,500 Net income 232,500 The following balance sheet information also is available: 12/31/2021 12/31/2020 Cash Accounts receivable $ 420,500 142,000 $ 81,000 111,000 Accrued liabilities (for operating expenses) Income taxes payable 92,000 21,000 71,000 37,000 In addition, the following transactions took place during the year: 1. Common stock was issued for $122,000 in cash. 2. Long-term investments were sold for $61,000 in cash. The original cost of the investments also was $61,000. 3. $91,000 in cash dividends was paid to shareholders. 4. The company has no outstanding debt, other than those payables listed above. 5. Operating expenses include $41,000 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. 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 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: Net cash flows from operating activities $ 0 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 0 0 0 $ 0 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 < Required 1 $ Required 2 >