2 Santana Rey, owner of Business Solutions, decides to prepare data statement of cash flows for her business using the following financial 50 points $24,807 18, 393 43,200 eBook BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue Net sales Total revenue Cost of goods sold $14,752 Depreciation expense-Office equipment 400 Depreciation expense-Computer equipment 1,170 Wages expense 2,350 Insurance expense 515 Rent expense 2,275 Computer supplies expense 1,265 Advertising expense 560 Mileage expense Repairs expense-Computer 890 Total expenses Net income Print 270 24,447 $18,753 2 Dec. 31, 2019 50 points 1,030 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 74,757 Accounts receivable 24,167 Inventory 654 Computer supplies 2,045 Prepaid insurance Prepaid rent 765 Total current assets 103, 418 Office equipment 7,900 Accumulated depreciation office equipment (800) Computer equipment 19,000 Accumulated depreciation-Computer equipment (2,340) Total assets $127, 178 Liabilities and Equity Accounts payable $ 0 Wages payable 965 Unearned computer service revenue 0 Total current liabilities 965 Equity Common stock 104,000 Retained earnings 22, 213 Total liabilities and equity $127,178 $55,352 5,568 0 500 1,575 765 63,760 7,900 (400) 19,000 (1,170) $89,090 eBook Print $ 1,190 540 1,800 3,530 78,000 7,560 $89,090 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 $26,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,100 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) 2 BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2020 Cash flows from operating activities 50 points Adjustments to reconcile net income to net cash provided by operating activities eBook Print 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