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 $ 1,040,000 770,000 270,000 67,500 $ 202,500 The following balance sheet information also is available: 12/31/2021 Cash Accounts receivable Accrued liabilities (for operating expenses) Income taxes payable $ 378,500 134,000 84,000 17,000 12/31/2020 $ 77,000 107,000 67,000 29,000 In addition, the following transactions took place during the year: 1. Common stock was issued for $114,000 in cash. 2. Long-term investments were sold for $57,000 in cash. The original cost of the investments also was $57,000. 3. $87,000 in cash dividends was paid to shareholders. 4. The company has no outstanding debt, other than those payables listed above. 5. Operating expenses include $37,000 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.