Liabilities and Equity

Account Payable: March- $0 Dec- $1130

Wages Payable: March- $925 Dec- $570

Unearned Computer Service March-$0 Dec-$1800

Total current Liabilities: March-$925 Dec-$3500

Equity

Common Stock March-$111,000 Dec-$78000

Retained Earnings March-$21253 Dec-$8060

Total liabilities and equity March-$133,178 Dec-$89,560

$ 24,407 18,593 43,000 Income Statement For Three Months Ended March 31, 2020 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 Repairs expense-Computer Total expenses Net income $14,952 350 1,210 2,950 505 1,975 1,265 580 290 930 25,007 $17,993 Dec. 31, 2019 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 81,097 Accounts receivable 23,667 Inventory 654 Computer supplies 2,055 Prepaid insurance 1,040 Prepaid rent 785 Total current assets 109,298 Office equipment 7,500 Accumulated depreciation-office equipment (700) Computer equipment 19,500 Accumulated depreciation-Computer equipment (2,420) Total assets $133,178 Liabilities and Equity $55,972 5,268 0 510 1,585 785 64,120 7,500 (350) 19,500 (1,210) $89,560 Prepare a statement of cash flows for Business Solutions using the Indirect method for the three months ended March 312020 Owner Santana Rey contributed $33,000 to the business in exchange for additional stock in the first quarter of 2020 and has receiver $4,800 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, 2020 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 LITT CE Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities TUTTI CE . Cash balance at December 31, 2019 Cash balance at March 31, 2020