The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2021, appears below:

Service revenue	$	1,100,000
Operating expenses		800,000
Income before income taxes		300,000
Income tax expense		75,000
Net income	$	225,000

The following balance sheet information also is available:

	12/31/2021			12/31/2020
Cash	$	410,000		$	80,000
Accounts receivable		140,000			110,000
Accrued liabilities (for operating expenses)		90,000			70,000
Income taxes payable		20,000			35,000

In addition, the following transactions took place during the year:

1. Common stock was issued for $120,000 in cash.
2. Long-term investments were sold for $60,000 in cash. The original cost of the investments also was $60,000.
3. $90,000 in cash dividends was paid to shareholders.
4. The company has no outstanding debt, other than those payables listed above.
5. Operating expenses include $40,000 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 Diversifieds 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 Net cash flows from operating activities $ 0 Cash flows from investing activities: Net cash flows from investing activities 0 Cash flows from financing activities: Net cash flows from financing activities 0 Increase in cash 0 sh and cash equivalents, January1 Cash and cash equivalents, December 31 $ 0 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 S C