Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for data BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue $ 24,807 Net sales 18,493 Total revenue 43,300 Cost of goods sold $ 14,952 Depreciation expense-Office equipment 390 Depreciation expense-Computer equipment 1,160 Wages expense 2,450 Insurance expense 475 Rent expense 1,575 Computer supplies expense 1,255 Advertising expense 560 Mileage expense 230 Repairs expense-Computer 940 Total expenses 23,987 Net income $19,313 Dec. 31, 2019 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 80,857 Accounts receivable 23,967 Inventory 694 Computer supplies 2,085 Prepaid insurance 1,040 Prepaid rent 805 Total current assets 109,448 Office equipment 7,500 Accumulated depreciation office equipment (780) Computer equipment 19,500 Accumulated depreciation-Computer equipment (2,320) Total assets $133, 348 Liabilities and Equity Accounts payable $ 0 Wages payable 875 Unearned computer service revenue 0 Total current liabilities 875 Equity Common stock 110,000 Retained earnings 22.473 Total liabilities and equity $133, 348 $ 58,942 5,168 0 530 1,585 805 67,030 7,500 (390) 19,500 (1,160) $92,480 $ 1,120 500 2,400 4,020 81,000 7,460 $ 92,480 Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three m Owner Santana Rey contributed $29,000 to the business in exchange for additional stock in the fim $4,300 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) Net Income Dec. 31, 2019 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 80,857 Accounts receivable 23,967 Inventory 694 Computer supplies 2,085 Prepaid insurance 1,040 Prepaid rent 805 Total current assets 109,448 office equipment 7,500 Accumulated depreciation office equipment (780) Computer equipment 19,500 Accumulated depreciation-Computer equipment (2,320) Total assets $133,348 Liabilities and Equity Accounts payable $ 0 Wages payable 875 Unearned computer service revenue 0 Total current liabilities 875 Equity Common stock 110,000 Retained earnings 22,473 Total liabilities and equity $133, 348 $ 58,942 5,168 0 530 1,585 805 67,030 7,500 (390) 19,500 (1,160) $92, 480 $ 1,120 500 2,400 4,020 81,000 7,460 $92,480 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 $29,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,300 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)
