Wk 4 - Apply: Summative Assessment... Saved Help Save & Exit Submit 2 The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2021, appears below: 33.33 points Service revenue Operating expenses Income before income taxes Income tax expense Net income $980,000 740,000 240,000 60,000 $180,000 eBook The following balance sheet information also is available: References Cash Accounts receivable Accrued liabilities (for operating expenses) Income taxes payable 12/31/2021 12/31/2020 $ 347,000 $ 74,000 128,000 104,000 78,000 64,000 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. Wk 4 - Apply: Summative Assessment... Saved Help Save & Exit Submit 2 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. 33.33 points Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 References Prepare a statement of cash flows for 2021 for the Diversified Portfolio Corporation. Use the direct method for rep operating activities. (Amounts to be deducted should be indicated with a minus sign.) DIVERSIFIED PORTFOLIO CORPORATION Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities WK 4 - Apply: Summative Assessment... i Saved Help Save & Exit Submit Cash Tows from operaung activities: 2 33.33 points Net cash flows from operating activities Cash flows from investing activities: eBook References Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Increase in cash Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 WK 4 - Apply: Summative Assessment... i Saved Help Save & Exit Submit 2 The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2021, appears below: 33.33 points Service revenue Operating expenses Income before income taxes Income tax expense Net income $980,000 740,000 240,000 60,000 $ 180,000 eBook The following balance sheet information also is available: References Cash Accounts receivable Accrued liabilities (for operating expenses) Income taxes payable 12/31/2021 12/31/2020 $ 347,000 $ 74,000 128,000 104,000 78,000 64,000 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. WK 4 - Apply: Summative Assessment... Saved Help Save & Exit Submit 2 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. 33.33 points Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 References Prepare the cash flows from operating activities section of Diversified's 2021 statement of cash flows using the inc method. (Amounts to be deducted should be indicated with a minus sign.) 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