Answered step by step
Verified Expert Solution
Link Copied!

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. $ 25, 307

image text in transcribed
image text in transcribed
image text in transcribed
Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. $ 25, 307 18,693 14.000 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue Net sales Total revenue Cost of goods sold $14,052 Depreciation expense-office equipment 400 Depreciation expense-Computer equipment 1.25e Wages expense 3,250 Insurance expense 555 Rent expense 2.475 Computer supplies expense 1. Jos Advertising expense 600 Mileage expense 320 Repairs expense-Computer Total expenses Net Income 25, 162 $18.83 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar 31, 2020 68,057 8 5,668 580 665 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar 312029 Assets Cash Accounts receivable Inventory Computer supplies Prepaid Insurance Prepaid rent Total current assets 5,568 office equipment 8,000 Accumulated depreciation-office equipment (800) Computer equipment 20,000 Accumulated depreciation-Computer equipment (2,500) Total assets 120.268 Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Total current liabilities Equity Common stock Retained earnings Total liabilities and equit 8,000 (480) 20,000 (1,250) 83,460 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 $25,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,800 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2020 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Dare To Be Different An Auditors Personal Guide To Excellence

Authors: Daniel Clark

1st Edition

1490772405, 978-1490772400

More Books

Students also viewed these Accounting questions

Question

1. Identify three approaches to culture.

Answered: 1 week ago

Question

2. Define communication.

Answered: 1 week ago