aCCT 120" Mrch ssignmenti2,-Sa: ed to this pc rences Mailings Review View Help Tell me what you want to do 2-B+ L Normal TT No Spac Heading 1 Head Paragraph Styles P 4-9 Statement of eash flows The Diversified Portfolio Corporation provides investment advice to customers. A coodensed income statement for the year ended December 31, 2018, appears below Service revemue Operating expenses Income before income taxes 200.000 Income tax expense Net income The following balance sheet information also is available: $900,000 00,000 0,000 $ 120,000 1231/2018 12/31/2017 275,000 70,000 120.000 100.000 Cash Accounts receivable Accounts payable (operating expenses) 70,00060,000 Income taxes payable In addition, the following transactions took place during the year: 10,000 15,000 1. Common stock was issued for $100,000 in cash. 2. Long-term investments were sold for $50,00o in cash. The original cost of the investments also was S50,000. 3. $8o,ooo in cash dividends was paid to shareholders. 4. The company has no outstanding debt, other than those payables listed above. 5. Operating expenses include $3o,ooo in depreciation expense. Required 1. Prepare a statement of cash flows for 2018 for the Diversified Portfolio Corporation. Use the direct method for reporting operating activities. 2. Prepare the cash flows from operating activities section of Diversited's 2018 statement of cash flows using the indirect method