Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. Required: Prepare a
Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data.
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 $4,200 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)
BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2018 $24,807 Computer services revenue Net sales 17,993 Total revenue 42,800 $14,552 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 320 1,170 2,550 525 1,975 1,215 550 230 890 23,977 $18,823 Net income BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2017, and March 31, 2018 Mar. 31, Dec. 31 2018 2017 Assets $ $51,582 Cash 69,037 24,267 Accounts receivable 4,968 Inventory Computer supplies Prepaid insurance Prepaid rent 694 2,015 1,010 500 1,655 745 745 Total current assets 97,768 7,800 59,450 7,800 Office equipment Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-Computer equipment (640) (320) 19,300 19,300 (2,340) (1,170) 85,060 Total assets 121,888 Liabilities and Equity Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-Computer equipment (640) (320) 19,300 19,300 (2,340) (1,170) $ 121,888 $85,060 Total assets Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue $ $ 1,140 905 560 2,000 3,700 0 Total current liabilities 905 Equity Common stock 99,000 21,983 74,000 7,360 Retained earnings $ 121,888 $85,060 Total liabilities and equity tA tA BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2018 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, 2017 Cash balance at March 31, 2018Step by Step Solution
There are 3 Steps involved in it
Step: 1
To prepare the Statement of Cash Flows for Business Solutions using the indirect method for the quarter ended March 31 2018 follow these steps Step 1 ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started