Question
Please help me. Thank you so much Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using
Please help me.
Thank you so much Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. $ 24,807 18,293 43,100 BUSINESS SOLUTIONS 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 $14,652 350 1,160 2,450 515 1,775 1,265 560 300 910 23,937 $ 19,163 Dec. 31, 2019 $50,942 5,368 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 72,027 Accounts receivable 24,467 Inventory 604 Computer supplies 2,095 Prepaid insurance 1,060 Prepaid rent 795 Total current assets 101,048 Office equipment 7,500 Accumulated depreciation-office equipment (700) Computer equipment 19,300 Accumulated depreciation-Computer equipment (2,320) Total assets $124,828 Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Total current liabilities 905 Equity Common stock 101,000 Retained earnings 22,923 Total liabilities and equity $124,828 550 1,665 795 59,320 7,500 (350) 19,300 (1,160) $84,610 $ 1,110 540 1,900 3,550 73,000 8,060 $84,610 Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2020. Owner Santana Rey contributed $28,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,300 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 Cash balance at December 31, 2019 Cash balance at March 31, 2020
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