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The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2021, appears below:
Service revenue $ 1,180,000
Operating expenses 840,000
Income before income taxes 340,000
Income tax expense 85,000
Net income $ 255,000
The following
12/31/2021 12/31/2020
Cash $ 452,000 $ 84,000
Accrued liabilities (for operating expenses) 98,000 74,000
Income taxes payable 24,000 43,000
In addition, the following transactions took place during the year:
1.Common stock was issued for $128,000 in cash.
2.Long-term investments were sold for $64,000 in cash/ The original cost of the investments also was $64,000.
3.$94,000 in cash dividends was paid to shareholders.
4.The company has no outstanding debt, other than those payables listed above.
5.Operating expenses include $44,000 in
Required:
Prepare a statement of
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 $ 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
Cash and cash equivalents, January 1 __________
Cash and cash equivalents, December 31 $ 0
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