The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2016, appears below:

Service revenue	$	1,240,000
Operating expenses		870,000
Income before income taxes		370,000
Income tax expense		74,000
Net income	$	296,000

The following balance sheet information also is available:

	12/31/16	12/31/15
Cash	$	475,000	$	60,000
Accounts receivable		154,000		117,000
Accounts payable (operating expenses)		104,000		77,000
Income taxes payable		27,000		49,000

In addition, the following transactions took place during the year:
1.	Common stock was issued for $134,000 in cash.
2.	Long-term investments were sold for $67,000 in cash. The original cost of the investments also was $67,000.
3.	$97,000 in cash dividends was paid to shareholders.
4.	The company has no outstanding debt, other than those payables listed above.
5.	Operating expenses include $47,000 in depreciation expense.

Required:
1.	Prepare a statement of cash flows for 2016 for the Diversified Portfolio Corporation. Use the direct method for reporting operating activities.(Amounts to be deducted should be indicated with a minus sign.)

2.	Prepare the cash flows from operating activities section of Diversifieds 2016 statement of cash flows using the indirect method.(Amounts to be deducted should be indicated with a minus sign.)