Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data $25,107 17,993 43,100 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue Net sales Total revenue Cost of goods sold $14, 152 Depreciation expense-Office equipment 340 Depreciation expense-Computer equipment 1,210 Wages expense 2,350 Insurance expense 535 Rent expense 1,675 Computer supplies expense 1,295 Advertising expense 520 Mileage expense 270 Repairs expense-Computer 870 Total expenses Net income 23,217 $19,883 Dec. 31, 2019 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 73,957 Accounts receivable 23, 867 Inventory 684 Computer supplies 2,035 Prepaid insurance 1,040 Prepaid rent 765 Total current assets 102,348 Office equipment 7,500 Accumulated depreciation-office equipment (680) Computer equipment 19,800 Accumulated depreciation-Computer equipment (2,420) Total assets $126,548 Liabilities and Equity Accounts payable 0 Wages payable 905 Unearned computer service revenue Total current liabilities 905 Equity Common stock 103,000 Retained earnings 22,643 Total liabilities and equity $126,548 $49, 782 5,068 @ 570 1,635 765 57,820 7,500 (340) 19,800 (1,210) $83,570 $ 1,100 510 1,600 3,210 73,000 7,360 $83,570 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 $30,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,600 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2020 Cash flows from operating activities Net income 19,883 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense-Computer equipment (1,550) Increase in accounts receivable (18.799) Increase in inventory (684) Increase in computer supplies (1.465) Decrease in prepaid insurance 595 Decrease in accounts payable (1.100) Increase in wages payable 395 Decrease in unearned computer service revenue (1.600) DO Depreciation expense --Computer equipment Increase in accounts receivable Increase in inventory Increase in computer supplies Decrease in prepaid insurance Decrease in accounts payable Increase in wages payable Decrease in unearned computer service revenue (1,550) (18,799) (684) (1,465) 595 (1,100) 395 (1,600) $ (4,325) Net cash used by operating activities Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash paid for dividends Cash received from stock issuance 0 (4,600) 30,000 Net cash used in financing activities Net increase in cash Cash balance at December 31, 2019 Cash balance at March 31, 2020 $ 25,400 21,075 49,782 70,857 $