Dec. 31, 2017 $55,472 5,368 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2017, and March 31, 2018 Mar. 31, 2018 Assets Cash $ 83,637 Accounts receivable 23,967 Inventory 614 Computer supplies 2,015 Prepaid insurance 1,040 Prepaid rent 735 Total current assets 112,008 Office equipment 7,500 Accumulated depreciation-office equipment (780) Computer equipment 19,500 Accumulated depreciation-Computer equipment (2,460) Total assets $135,768 Liabilities and Equity Accounts payable $ Wages payable 885 Unearned computer service revenue Total current liabilities 885 Equity Common stock 113,000 Retained earnings 21,883 Total liabilities and equity $135,768 540 1,595 735 63,710 7,500 (390) 19,500 (1,230) $89,090 1 $ 1,160 570 1,800 3,530 78,000 7,560 $89,090 Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. $ 24,507 17,993 42,500 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2018 Computer services revenue Net sales Total revenue Cost of goods sold $14,752 Depreciation expense-Office equipment 390 Depreciation expense-Computer equipment 1,230 Wages expense 2,550 Insurance expense 535 Rent expense Computer supplies expense 1,245 Advertising expense 52e Mileage expense 250 Repairs expense-Computer 930 Total expenses Net income 1,575 23,977 $ 18,523 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 $35,000 to the business in exchange for additional stock in the first quarter of 2018 and has received $4,200 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 Net Income Adjustments to reconcile net income to net cash provided by operating activities Nex 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