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I need help please Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business. (Although the serial problem
I need help please
Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business. (Although the serial problem allowed for various ownership changes in earlier chapters, we will prepare the statement of cash flows using the following financial data.) BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2016 Computer services revenue Net sales $ 24,407 17,893 42,300 $14,952 330 1,220 2,350 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 465 2,475 1,285 540 280 870 Total expenses 24,767 Net income $ 17,533 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2015, and March 31, 2016 Mar. 31, 2016 Dec 31, 2015 $ 60,482 5,668 Assets Cash Accounts receivable Inventory Computer supplies Prepaid insurance Prepaid rent $ 82,737 23,567 674 2,105 1,090 745 550 1,585 745 Total current assets Office equipment Accumulated depreciation Office equipment Computer equipment Accumulated depreciation-Computer equipment 110,918 7,400 (660) 19,700 (2,440) 69,030 7,400 (330) 19,700 (1,220) Total assets $134,918 $ 94,580 Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue 925 $ 1,130 590 1,800 925 3,520 Total current liabilities Equity Common stock Retained earnings 113,000 20,993 83,000 8,060 Total liabilities and equity $ 134,918 $ 94,580 Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2016. Recall that the owner Santana Rey contributed $30,000 to the business in exchange for additional stock in the first quarter of 2016 and has received $4,600 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, 2016 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash balance at December 31, 2015 Cash balance at March 31, 2016
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