Dec. 31, 2017 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2017, and March 31, 2018 Mar. 31, 2018 Assets Cash $ 83,867 Accounts receivable 23,867 Inventory 614 Computer supplies 2,085 Prepaid insurance 1,070 Prepaid rent 775 Total current assets 112,278 Office equipment 7,800 Accumulated depreciation-office equipment (800) Computer equipment 19,600 Accumulated depreciation-Computer equipment (2,300) Total assets $ 136,578 Liabilities and Equity Accounts payable $ 0 Wages payable 965 Unearned computer service revenue 0 Total current liabilities 965 Equity Common stock 113,000 Retained earnings 22,613 Total liabilities and equity $ 136,578 $58,562 4,868 0 570 1,645 775 66,420 7,800 (400) 19,600 (1,150) $92,270 $ 1,160 550 1,900 3,610 81,000 7,660 $ 92,270 $25,107 17,693 42,800 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2018 Computer services revenue Net sales Total revenue Cost of goods sold $14,452 Depreciation expense-Office equipment 400 Depreciation expense-Computer equipment 1,150 Wages expense 2,450 Insurance expense 495 Rent expense 1,975 Computer supplies expense 1,235 Advertising expense 570 Mileage expense 280 Repairs expense-Computer 940 Total expenses Net income 23,947 $18, 853 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 $3,900 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 $ 0 Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities 0 0 $ Cash balance at December 31, 2017 Cash balance at March 31, 2018 $ 0