$ 25,207 18,593 43,800 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue Net sales Total revenue Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Repairs expense-Computer Total expenses Net income $14,852 370 1,150 3,050 465 2,275 1,235 560 300 880 25,137 $ 18,663 Dec. 31, 2019 $58,812 4,968 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 86,387 Accounts receivable 24,467 Inventory 684 Computer supplies 2,055 Prepaid insurance 1,060 Prepaid rent 795 Total current assets 115,448 Office equipment 7,300 Accumulated depreciation-office equipment (740) Computer equipment 19,900 Accumulated depreciation-Computer equipment (2,300) Total assets $139,608 Liabilities and Equity Accounts payable $ Wages payable 885 Unearned computer service revenue Total current liabilities 885 Equity Common stock 116,000 Retained earnings 22,723 Total liabilities and equity $139,608 520 1,625 795 66,720 7,300 (370) 19,900 (1,150) $92,400 $ 1,110 530 1,800 3,440 81,000 7,960 $92,400 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 $35,000 to the business in exchange for additional stock in the first quarter of 2020 and has recer $3,900 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 $ 0 Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities 0 $ 0 Cash balance at December 31, 2019 Cash balance at March 31, 2020 $ 0