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 $34,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,200 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)

Item 2

55 points

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Item 2

Item 2 55 points

Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data.

BUSINESS SOLUTIONS
Income Statement
For Three Months Ended March 31, 2020
Computer services revenue				$	24,307
Net sales					18,393
Total revenue					42,700
Cost of goods sold	$	14,652
Depreciation expenseOffice equipment		400
Depreciation expenseComputer equipment		1,210
Wages expense		3,050
Insurance expense		525
Rent expense		2,375
Computer supplies expense		1,275
Advertising expense		510
Mileage expense		280
Repairs expenseComputer		860
Total expenses					25,137
Net income				$	17,563

BUSINESS SOLUTIONS
Comparative Balance Sheets
December 31, 2019, and March 31, 2020
	Mar. 31, 2020						Dec. 31, 2019
Assets
Cash		$	80,067					$	53,512
Accounts receivable			23,667						5,168
Inventory			674						0
Computer supplies			2,055						510
Prepaid insurance			1,020						1,585
Prepaid rent			815						815
Total current assets			108,298						61,590
Office equipment			7,100						7,100
Accumulated depreciationOffice equipment			(800	)					(400	)
Computer equipment			19,100						19,100
Accumulated depreciationComputer equipment			(2,420	)					(1,210	)
Total assets		$	131,278					$	86,180
Liabilities and Equity
Accounts payable		$	0					$	1,110
Wages payable			955						510
Unearned computer service revenue			0						1,600
Total current liabilities			955						3,220
Equity
Common stock			109,000						75,000

Equity
Common stock			109,000						75,000
Retained earnings			21,323						7,960
Total liabilities and equity		$	131,278					$	86,180