The Durango Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2021, appears below: Service revenue $1,125,000 Operating expenses 875,000 Income before income taxes 250,000 Income tax expense 62,500 Net income $187.500 The following balance sheet information also is available: Cash Accounts receivable Accrued liabilities (for operating expenses) Income taxes payable 12/31/2021 12/31/2020 $381,250 $87,500 150,000 125,000 87,500 75,000 12,500 18,750 In addition, the following transactions took place during the year: 1. Common stock was issued for $125,000 in cash. 2. Long-term investments were sold for $62,500 in cash. The original cost of the investments also was $62,500. 3. $100,000 in cash dividends was paid to shareholders, 4. The company has no outstanding debt, other than those payables listed above. 5. Operating expenses include $37,500 in depreciation expense. Required: 1. Prepare a statement of cash flows for 2021 for the Durango Corporation. Use the direct method for reporting operating activities