BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2022 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 $ 24,507 17,893 42,400 $ 14,852 300 1,190. 2,550 485 1,975 1,275 510 300 920 24,357 $ 18,043 Assets Cash Accounts receivable Inventory Computer supplies Prepaid insurance Prepaid rent BUSINESS SOLUTIONS Comparative Balance Sheets Total current assets Office equipment Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-Computer equipment Total assets Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Total current liabilities Equity Common stock Retained earnings Total liabilities and equity Required: March 31, December 31, 2022 2021 $ 80,677 23,667 $ 54,482 4,768 634 2,085 1,090 570 1,565 795 795 108,948 62,180) 7,300 (2,380) $ 132,468 $ 8 965 (600) 19,200 7,300 (300) 19,200 (1,190) $ 87,190 $1,140 590 2,1001 965 3,830 109,000 22,503 $132,468 75,000 8,360 $87,190 Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2022. Owner Santana Rey contributed $34,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $3,900 in cash dividends. Note: Amounts to be deducted should be indicated with a minus sign. Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2022. Owner Santana Rey contributed $34,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $3,900 in cash dividends. Note: Amounts to be deducted should be indicated with a minus sign. BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2022 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash balance at December 31, 20211 Cash balance at March 31, 2022