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 Total expenses Repairs expense-Computer $ 14,252 310 1,220 3,050 485 1,775 1,275 520 270 910 Net income Assets Cash Accounts receivable Inventory Computer supplies Prepaid insurance Prepaid rent $ 25,107 17,993 43,100 24,067 $ 19,033 BUSINESS SOLUTIONS Comparative Balance Sheets March 31, 2022 December 31, 2021 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: $ 83,857 24,467 614 2,015 1,060 795 112,808 $ 58,232 5,568 0 580 1,645 795 66,820 7,500 7,500 (620) 19,700 (2,440) $ 136,948 $ 1,130 0 955 3,830 114,000 21,993 $ 136,948 81,000 7,660 $ 92,490 $ 0 955 (310) 19,700 (1,220) $ 92,490 600 2,100 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 $33,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,700 in cash dividends. (Amounts to be Cash flows from operating activities Net income BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2022 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, 2021 Cash balance at March 31, 2022