The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2024, appears below Service revenue Operating expenses Incone before income taxes Income tax expense Net income $ 900,000 700,000 200,000 50,000 $ 150,000 The following balance sheet information also is available: 12/31/2024 $ 305,000 120,000 70,000 10,000 Cash Accounts receivable Accrued liabilities (for operating expenses) Income taxes payable In addition, the following transactions took place Euring 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare a statement of cash flows for 2024 for the Diversified Portfolio Corporation. Use the direct method for reporting
operating activities.
Note: Amounts to be deducted should be indicated with a minus sign.
DIVERSIFIED PORTFOLIO CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2024
Cash flows from operating activities
Net cash flows from operating activities
Cash flows from investing activities
Net cash flows from investing activities
Cash flows from financing activities
Net cash flows from financing activities
Increase in cash
Cash and cash equivalents, January 1
Cash and cash equivalents, December 31
Required 2
Cash flows from operating activities
*
DIVERSIFIED PORTFOLIO CORPORATION
Statement of Cash Flows (Partial)
For the Year-Ended December 31, 2024
Adjustments for noncash effects
Changes in operating assets and liabilities
Net cash flows from operating activities
S
S
Complete this question by entering your answers in the tabs below.
Required 1
Prepare the cash flows from operating activities section of Diversified's 2024 statement of cash flows using the indirect
method.
Note: Amounts to be deducted should be indicated with a minus sig
< Required 1
0
0
0
0
$
0
Required 2 >
0
Required 2 >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a statement of cash flows for 2024 for the Diversified Portfolio Corporation. Use the direct method for reporting operating activities. Note: Amounts to be deducted should be indicated with a minus sign. DIVERSIFIED PORTFOLIO CORPORATION Statement of Cash Flows For the Year Ended December 31, 2024 Cash flows from operating activities Net cash flows from operating activities Cash flows from investing activities Net cash flows from investing activities Cash flows from financing activities Net cash flows from financing activities Increase in cash Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 Required 2 Cash flows from operating activities * DIVERSIFIED PORTFOLIO CORPORATION Statement of Cash Flows (Partial) For the Year-Ended December 31, 2024 Adjustments for noncash effects Changes in operating assets and liabilities Net cash flows from operating activities S S Complete this question by entering your answers in the tabs below. Required 1 Prepare the cash flows from operating activities section of Diversified's 2024 statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sig < Required 1 0 0 0 0 $ 0 Required 2 > 0 Required 2 >
The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended
December 31, 2024, appears below
Service revenue
Operating expenses
Incone before income taxes
Income tax expense
Net income
$ 900,000
700,000
200,000
50,000
$ 150,000
The following balance sheet information also is available:
12/31/2024) 12/31/2023
$ 305,000
120,000
70,000
10,000
Cash
Accounts receivable
Accrued liabilities (for operating expenses)
Income taxes payable
In addition, the following transactions took place Juring the year
$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.
Transcribed Image Text:The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2024, appears below Service revenue Operating expenses Incone before income taxes Income tax expense Net income $ 900,000 700,000 200,000 50,000 $ 150,000 The following balance sheet information also is available: 12/31/2024) 12/31/2023 $ 305,000 120,000 70,000 10,000 Cash Accounts receivable Accrued liabilities (for operating expenses) Income taxes payable In addition, the following transactions took place Juring the year $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.
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