The diversified portfolio corporation provides investment advice to customers. a condensed income statement for the year ended december 31, 2018, appears below: service revenue $ 1,200,000 operating expenses 850,000 income before income taxes 350,000 income tax expense 70,000 net income $ 280,000 the following balance sheet information also is available: 12/31/18 12/31/17 cash $ 480,000 $ 85,000 accounts receivable 150,000 115,000 accounts payable (operating expenses) 100,000 75,000 income taxes payable 25,000 45,000 in addition, the following transactions took place during the year: common stock was issued for $130,000 in cash. long-term investments were sold for $65,000 in cash. the original cost of the investments also was $65,000. $95,000 in cash dividends was paid to shareholders. the company has no outstanding debt, other than those payables listed above. operating expenses include $45,000 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 diversified’s 2018 statement of cash flows using the indirect method.

Swathmore clothing corporation grants its customers 30 days' credit. the company uses the allowance method for its uncollectible accounts receivable. during the year, a monthly bad debt accrual is made by multiplying 3% times the amount of credit sales for the month. at the fiscal year-end of december 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly. at the end of 2012, accounts receivable were dollar 586.000 and the allowance account had a credit balance of dollar 50,000. accounts receivable activity for 2013 was as follows: the company's controller prepared the following aging summary of year-end accounts receivable: prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during the year. (if no entry is required for a particular event, select "no journal entry required" in the first account field.) prepare the necessary year-end adjusting entry for bad debt expense. (if no entry is required for an event, select "no journal entry required" in the first account field.) what is total bad debt expense for 2013? calculate the amount of accounts receivable that would appear in the 2013 balance sheet?