Adria Lopez, owner of Success Systems, 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.) SUCCESS SYSTEMS Income Statement For Three Months Ended March 31, 2014 Computer services revenue 24,707 18,593 Net sales 43,300 $15.052 400 1,180 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 2.550 485 2,175 1.245 590 250 910 24,837 Total expenses 18.463 Net income 2013 SUCCESS SYSTEMS Comparative Balance Sheets December 31, 2013, and March 31, 2014 2014 Assets Cash $ 78,107 Accounts receivable 24.267 Merchandise inventory 704 Computer supplies 2,015 Prepaid insurance 1,030 Prepaid rent 815 Office equipment 7,200 Accumulated depreciation-Office equipment (800) Computer equipment 19,400 Accumulated depreciation-Computer equipment (2.360) $ 59,042 5,568 0 550 1.605 815 7,200 (400) 19,400 (1,180) Total assets $ 130,378 $ 92,600 Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Common stock Retained earnings $ 0 955 0 107.000 22,423 $ 1,200 540 1,800 81,000 8.060 Total liabilities and equity $ 130,378 $ 92,600 Required: Prepare a statement of cash flows for Success Systems using the indirect method for the three months ended March 31, 2014. Recall that the owner Adria Lopez contributed $26.000 to the business in exchange for additional stock in the first quarter of 2014 and has received $4100 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) SC Peindir For Que Ended Mar 2014 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities 10 Cash fiows from investing activities Net cash used in investing activities Cash flows from financing activities Cash balance at December 21 2013 Clash balance at March 31, 2014