Check Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2018 Computer services revenue Net sales Total revenue Cost of goods sold Depreciation Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Repairs expense-Computer Total expenses Net income $25,307 17,993 43,300 points $14,952 310 1,170 2,550 495 1,575 1,285 600 230 900 expense-office equipment eBook Print 24,067 $19,233 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2017, and March 31, 2018 Mar. 31, Dec. 31, 2018 2017 Assets Cash Accounts receivable Inventory Computer supplies Prepaid insurance Prepaid rent Total current assets office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation Total assets $ 79,437 $54,422 5, 368 23,967 614 2,025 1,090 570 1,635 785 785 107,918 62,780 7,200 7,200 (620) (310) 19,700 (2,340) 19,700 1.170 -Computer equipment $131,858 $88,200 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2017, and March 31, 2018 Mar. 31, Dec. 31, 2018 2017 Assets Cash Accounts receivable Inventory Computer supplies Prepaid insurance Prepaid rent Total current assets Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Total assets $ 79,437 $54,422 5,368 23,967 614 2,025 1,090 785 107,918 7,200 (620) 19,700 570 1,635 785 62,780 7,200 (310) 19,700 (2,340) (1,170) $131,858 88,200 Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Total current liabilities Equity Common stock Retained earningS 965 965 108,000 0 1,190 550 2,300 4,040 76,000 22,8938160 $131,858 88,200 Total liabilities and equity Required 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 $32,000 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.) Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2018 Cash flows from operating activities Net income 19,233 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense-Office equipment Depreciation expense-Computer equipment Increase in accounts receivable Increase in inventory Increase in computer supplies Decrease in prepaid insurance Decrease in accounts payable Increase in wages payable Decrease in unearned computer service revenue 310 1,170 (18,599) (614) (1,455) 545 (1,190) 415 (2,300) (2,485) Net cash provided by operating activities Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance 32,000 Cash paid for dividends (4,500) Net cash provided by financing activities 27,500 $ 25,015 54,442 79,457 et increase in cash Cash balance at December 31, 2017 Cash balance at March 31, 2018