The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2024, appears below: Service revenue Operating expenses Income before income taxes Income tax expense Net income $ 1,200,000 850,000 350,000 87,500 $262,500 The following balance sheet information also is available: 12/31/2024 Cash $462,500 12/31/2023 $ 85,000 Accounts receivable 150,000 Accrued liabilities (for operating expenses) 100,000 115,000 75,000 Income taxes payable 25,000 45,000 In addition, the following transactions took place during the year 1. Common stock was issued for $130,000 in cash. 2. Long-term investments were sold for $65,000 in cash. The original cost of the investments also was $65,000. 3. $95,000 in cash dividends was paid to shareholders. 4 The company has no outstanding debt, other than those payables listed above 5. Operating expenses include $45,000 in depreciation expense Required: 1. Prepare a statement of cash flows for 2024 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 2024 statement of cash flows using the indirect method