Adria Lopez, owner of Success Systems, 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.)

Required

Prepare a statement of cash flows for Success Systems using the indirect method for the three months ended March 31, 2014. Recall that the owner Adria Lopez contributed $25,000 to the business in exchange for additional stock in the first quarter of 2014 and has received $4,800 in cash dividends
 
 

SUCCESS SYSTEMS Income Statement For Three Months Ended March 31, 2014 Computer services revenue $25,160 Net sales ... 18,693 Total revenue .. 43,853 Cost of goods sold Depreciation expense- Office equipment $14,052 400 Depreciation expense- Computer equipment Wages expense 1,250 3,250 ..... Insurance expense 555 Rent expense 2,475 .... Computer supplies expense Advertising expense Mileage expense Repairs expense-Computer Total expenses 1,305 600 320 960 25,167 Net income $18,686