Question
Santana Rey, owner of Business Solutions, decides to make a statement of cash flows for her business using the following financial data. BUSINESS SOLUTIONSIncome StatementFor
Santana Rey, owner of Business Solutions, decides to make a statement of cash flows for her business using the following financial data.
BUSINESS SOLUTIONSIncome StatementFor Three Months Ended March 31, 2018Computer services revenue$24,407Net sales18,693Total revenue43,100Cost of goods sold$14,052Depreciation expenseOffice equipment340Depreciation expenseComputer equipment1,240Wages expense3,050Insurance expense455Rent expense1,775Computer supplies expense1,305Advertising expense560Mileage expense300Repairs expenseComputer950Total expenses24,027Net income$19,073
BUSINESS SOLUTIONSComparative Balance SheetsDecember 31, 2017, and March 31, 2018Mar. 31, 2018Dec. 31, 2017AssetsCash$81,797$59,492Accounts receivable24,2674,868Inventory6740Computer supplies2,065490Prepaid insurance1,0501,655Prepaid rent755755Total current assets110,60867,260Office equipment7,7007,700Accumulated depreciationOffice equipment(680)(340)Computer equipment19,90019,900Accumulated depreciationComputer equipment(2,480)(1,240)Total assets$135,048$93,280Liabilities and EquityAccounts payable$0$1,120Wages payable915500Unearned computer service revenue01,500Total current liabilities9153,120EquityCommon stock111,00082,000Retained earnings23,1338,160Total liabilities and equity$135,048$93,280
Required:
What is the statement of cash flows for Business Solutions using theindirect methodfor the three months ended March 31, 2018. Owner Santana Rey contributed $29,000 to the business in exchange for additional stock in the first quarter of 2018 and has received $4,100 in cash dividends.(Amounts to be deducted should be indicated with a minus sign.)
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