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Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. $24,607 17,793 42,400

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Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. $24,607 17,793 42,400 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2018 Computer services revenue Net sales Total revenue Cost of goods sold $14,652 Depreciation expense-Office equipment 350 Depreciation expense-Computer equipment 1,180 Wages expense 2,650 Insurance expense 535 Rent expense 1,775 Computer supplies expense 1,215 Advertising expense 500 Mileage expense 240 950 Repairs expense-Computer Total expenses Net income 24,047 $18,353 Dec. 31, 2017 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2017, and March 31, 2018 Mar. 31, 2018 Assets Cash $ 83,677 Accounts receivable 24,467 Inventory 644 Computer supplies 2,045 Prepaid insurance 1,090 Prepaid rent 785 Total current assets 112,908 office equipment 7,200 Accumulated depreciation office equipment (700) Computer equipment 19,100 Accumulated depreciation-Computer equipment (2,360) Total assets $136,148 $58,902 5,668 0 530 1,575 785 67,460 7,200 (350) 19, 100 (1,180) $92,230 1 of 1 Next Prev Dec. 31, 2017 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2017, and March 31, 2018 Mar. 31, 2018 Assets Cash $ 83,877 Accounts receivable 24,467 Inventory 644 Computer supplies 2,045 Prepaid insurance 1,090 Prepaid rent 785 Total current assets 112,908 Office equipment 7,200 Accumulated depreciation-office equipment (700) Computer equipment 19,100 Accumulated depreciation-Computer equipment (2,360) Total assets $136,148 Liabilities and Equity Accounts payable Wages payable 935 Unearned computer service revenue Total current liabilities 935 Equity Common stock 113,000 Retained earnings 22,213 Total liabilities and equity $136,148 $58,902 5,668 0 530 1,575 785 67,460 7,200 (350) 19,100 (1.180) $92,230 $ 1,110 560 2,400 4,070 80,000 8,160 $92,230 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 $33,000 to the business in exchange for additional stock in the first quarter of 2018 and has received $4,300 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, 2018

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