520 Chapter 12 Reporting Cash Flows SERIAL PROBLEM (This serial problem began in Chapter 1 and continues through most of the book. If previous chapter seg- Business Solutions (Indirect) ments were not completed, the serial problem can begin at this point) P1 P2 P3 SP 12 Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business. (Although the serial problem allowed for various ownership changes in earlier chapters, we will prepare the statement of cash flows using the following financial data.) BUSINESS SOLUTIONS Comparative Balance Sheets December 31. 2017, and March 31, 2018 Mar. 31, 2018 Dec. 31, 2017 Assets Cash Accounts receivable $ 68.057 22,867 $48.372 5,668 Computer supplies Prepaid insurance. Prepaid rent Total current assets .. Office equipment 580 :,665 125 57,110 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31. 2018 1,110 Computer services revenue Net sales Total revenue $25,307 18,693 44,000 equipment Computer equipment. Accumulated $14,052 20,000 20,000 Computer equipment Total assets 2.500) $120,268 (1.250) $83,460 400t Office equipment. Depreciation expense- 1,250 Computer equipment. Wages expense Insurance expense Rent expense Computer supplies expense.. Advertising expense. Mileage expense Repairs expense-Computer Total expenses Net income Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue . . . . Total current liabilities 3,250 $O1,100 500 875 2.475 1,305 600 320 960 875 3,100 Equity Common stock 98,000 21,393 73,000 7.360 2516Retained eanings $18.833 $120.268 $3,460 Required Prepare a statement of cash flows for Business Solutions using the indirect method for the three months additional stock in the first quarter of 2018 and has received $4,800 in cash dividends. Check Cesh flows used by operations: $(515) ended March 31, 2018. Recall that owner Santana Rey contributed $25,000 to the business in exchange for