Prepare a statement of cash flows for 2013 for the

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Reference no: EM13574934

The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2013, appears below:

Service revenue

1,120,000

Operating expenses

810,000

Income before income taxes

310,000

Income tax expense

93,000

Net income

217,000

The following balance sheet information also is available:

12/31/13

12/31/12

Cash

405,000

81,000

Accounts receivable

142,000

111,000

Accounts payable (operating expenses)

92,000

71,000

Income taxes payable

21,000

37,000

In addition, the following transactions took place during the year:

1.	Common stock was issued for $122,000 in cash.
2.	Long-term investments were sold for $61,000 in cash. The original cost of the investments also was $61,000.
3.	$91,000 in cash dividends was paid to shareholders.
4.	The company has no outstanding debt, other than those payables listed above.
5.	Operating expenses include $41,000 in depreciation expense.

Required:
1.	Prepare a statement of cash flows for 2013 for the Diversified Portfolio Corporation. Use the direct method for reporting operating activities. (Amounts to be deducted should be indicated with a minus sign)

Reference no: EM13574934

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