1a)

1b)

1c)

Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. $24,507 17,793 42,300 BUSINESS SOLUTIONS Income Statement For Three Monthn Ended March 31, 2020 Computer services revenue Net sales Total revenue Cost of goods sold $14,552 Depreciation expense-office equipment 330 Depreciation expense-Computer equipment 1,240 Wages expense 3,150 Insurance expense 545 Rent expense 1,675 Computer supplies expense 1,285 Advertising expense 520 Mileage expense Repairs expense-Computer 920 Total expenses Net Income 300 24,517 $17.783 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar 31, 2020 Dec 31, 2019 Assets Cash Accounts receivable Inventory Computer supplies Prepaid Insurance Prepaid rent $ 71,197 23,667 694 2,025 1,060 795 $51,902 4,868 O 520 1,665 795 795 99,438 7.100 (660) 19,600 (2, 480) $122,998 FAO. ALIQUA Prepaid rent Total current assets office equipment Accumulated depreciation office equipment Computer equipment Accumulated depreciation-Computer equipment Total assets Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Total current liabilities Equity Common stock Retained earnings Total liabilities and equity 795 59,750 7,100 (330) 19,600 (1,240) $84,880 $ 0 955 0 955 $ 1,190 530 2,400 4,120 101,000 21,043 $122,998 73,000 7,760 $84,880 Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31 , 2020. Owner Santana Rey contributed $28,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,500 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2020 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities U Jasna Ney LUULEU 40 UUU UUSALIHYVI OVU SUNIM MOI LULU GHI 10 eu $4,500 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2020 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash balance at December 31, 2019 Cash balance at March 31, 2020 Bryant Co. reports net income of $22,200. For the year, depreciation expense is $9,200 and the company reports a gain of $5,200 from sale of machinery. It also had a $4,200 loss from retirement of notes. Compute cash flows from operations using the Indirect method. (Amounts to be deducted should be indicated by a minus sign.) Cash Flows from Operating Activities (Indirect) Adjustments to reconcile net income to net cash provided by operating activities Income statement Mems not affecting cash Indicate which of the following has an effect on financing cash flows. a. Notes payable with a carrying value of $17,000 are retired for $19,000 cash, resulting in a $2,000 loss. b. Paid cash dividends of $13,000 to common stockholders. c. Acquired $22,000 worth of machinery in exchange for common stock. Items Amount Effect on financing cash flows a a. Notes payable b. Dividends c. Machinery