BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2018 Computer services revenue $24,407 18,493 Net sales Total revenue 42,900 Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense $14,852 330 1,160 2,450 Insurance expense 515 Rent expense 1,875 1,265 Computer supplies expense Advertising expense Mileage expense 530 260 880 Repairs expense-Computer Total expenses 24,117 $18,783 Net income BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2017, and March 31, 2018 Mar. 31, Dec. 31, 2018 2017 Assets Cash $ 77,777 24,567 $53,522 4,768 Accounts receivable Inventory Computer supplies 614 C 2,065 1,020 755 490 Prepaid insurance Prepaid rent 1,655 755 Total current assets 106,798 7,700 (660) 19,200 (2,320) 61,190 7,700 (330) 19,200 (1,160) Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Total assets $130,718 $86,600 Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue $1,190 0 875 550 2,300 C Total current liabilities 875 4,040 Equity 75,000 7,560 Common stock 108,000 21,843 Retained earnings Total liabilities and equity $130,718 $86,600 Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2018. Owner Santana Rey contributed $33,000 to the business in exchange for additional stock in the first quarter of 2018 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, 2018 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, 2017 Cash balance at March 31, 2018