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)
|