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 $980,000 740,000 240.000 60,000 $180,000 The following balance sheet information also is available: 12/31/2021 12/31/2020 Cash $ 347,000 5. 74,000 Accounts receivable 128,000 104,000 neered abilities (for operating 78,000 64,000 expenses Income taxes payable 14.000 23,000 In addition, the following transactions took place during the year 1. Common stock was issued for $108,000 in cash. 2. Long-term investments were sold for $54,000 in cash. The original cost of the investments also was $54,000. 3. $84,000 in cash dividends was paid to shareholders. 4. The company has no outstanding debt, other than those payables listed above. 5. Operating expenses include $34,000 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 DIVERSIFIED PORTFOLIO CORPORATION Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities: Cash received from customers $ 956,000 Cash paid for operating expenses Cash paid for income taxes $ 956,000 Net cash flows from operating activities Cash flows from investing activities: Sale of investments 0 Net cash flows from investing activities Cash flows from financing activities: Issuance of common stock Dividends paid to shareholders 0 Net cash flows from financing activities Increase in cash Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 956,000 $ 956,000 DIVERSIFIED PORTFOLIO CORPORATION Statement of Cash Flows (Partial) For the Year Ended December 31, 2021 Cash flows from operating activities: Adjustments for noncash effects: Depreciation expense Changes in operating assets and liabilities: Increase in accounts receivable Increase in accrued liabilities Decrease in income taxes payable $ Net cash flows from operating activities