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need help answering Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data.
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Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. $24,507 17,893 42,400 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2018 Computer services revenue Net sales Total revenue Cost of goods sold $14,252 Depreciation expense-office equipment 370 1, 230 Wages expense Insurance expense 485 2,375 275 Rent expense Computer supplies expense 1,285 Advertising expense 510 Mileage expense 230 Repairs expense-Computer 940 Total expenses Net income Depreciation expense-Computer equipment 3,250 24,927 $17,473 Dec. 31, 2017 $53,872 4,868 2,065 1,030 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2017, and March 31, 2018 Mar. 31, 2018 Assets Cash $ 68,927 Accounts receivable 24,467 Inventory 694 Computer supplies Prepaid insurance Prepaid rent 735 Total current assets 97,918 918 office equipment Accumulated depreciation-office equipment (740) Computer equipment Accumulated depreciation-Computer equipment (2,460) Total assets $121, 618 Liabilities and Equity Accounts payable $ 0 Wages payable 885 Unearned computer service revenue 0 Total current liabilities 885 Equity Common stock 100,000 Retained earnings 20,733 Total liabilities and equity $121, 618 500 1,645 61,620 7,500 735 7,500 (370) 19, 400 19, 400 (1,230) $86,920 $ 1,190 570 2,300 4,060 75,000 7,860 $86,920 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 $25,000 to the business in exchange for additional stock in the first quarter of 2018 and has received $4,600 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) Dec. 31, 2017 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2017, and March 31, 2018 Mar. 31, 2018 Assets Cash $ 68,927 Accounts receivable 24, 467 Inventory 694 Computer supplies 2,065 Prepaid insurance 1,030 Prepaid rent 735 Total current assets 97,918 office equipment 7,500 Accumulated depreciation-office equipment (740) Computer equipment 19,400 Accumulated depreciation-Computer equipment (2,460) Total assets $121, 618 Liabilities and Equity Accounts nayahle $53,872 4,868 0 500 1,645 735 61, 620 7,500 (370) 19,400 (1,230) $86,920 $ 1190Step by Step Solution
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