appears below. Service revenue Operating expenses $ 900,000 700,000 200,000 50,000 Income before income taxes $...

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appears below. Service revenue Operating expenses $ 900,000 700,000 200,000 50,000 Income before income taxes $ 150,000 Income tax expense Net income The following balance sheet information also is available: 12/31/2024 Cash Accounts receivable Accrued liabilities (for operating expenses) Income taxes payable $ 305,000 120,000 70,000 10,000 In addition, the following transactions took place during the year 12/31/2023 $ 70,000 100,000 60,000 15,000 1. Common stock was issued for $100,000 in cash. 2. Long-term investments were sold for $50,000 in cash. The original cost of the Investments also was $50,000. 3. $80,000 in cash dividends was paid to shareholders. 4. The company has no outstanding debt, other than those payables listed above. 5. Operating expenses include $30,000 in depreciation expense. Required: 1. Prepare a statement of cash flows for 2024 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 2024 statement of cash flows using the indirect method. appears below. Service revenue Operating expenses $ 900,000 700,000 200,000 50,000 Income before income taxes $ 150,000 Income tax expense Net income The following balance sheet information also is available: 12/31/2024 Cash Accounts receivable Accrued liabilities (for operating expenses) Income taxes payable $ 305,000 120,000 70,000 10,000 In addition, the following transactions took place during the year 12/31/2023 $ 70,000 100,000 60,000 15,000 1. Common stock was issued for $100,000 in cash. 2. Long-term investments were sold for $50,000 in cash. The original cost of the Investments also was $50,000. 3. $80,000 in cash dividends was paid to shareholders. 4. The company has no outstanding debt, other than those payables listed above. 5. Operating expenses include $30,000 in depreciation expense. Required: 1. Prepare a statement of cash flows for 2024 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 2024 statement of cash flows using the indirect method.

Answer rating: 100% (QA)

1 Prepare a statement of cash flows for 2024 for the Diversified Portfolio Corporation Use the direct method for reporting operating activities Divers... View the full answer