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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. BUSINESS SOLUTIONS Income
Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2022 Computer services revenue $ 25,307 Net sales 18,693 Total revenue 44,000 Cost of goods sold $ 14,052 Depreciation expense-office equipment 400 Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Repairs expense-Computer Mileage expense Total expenses 1,250 3,250 555 2,475 Net income 1,305 600 328 968 25,167 $ 18,833 Assets Cash Accounts receivable Inventory Computer supplies Prepaid Insurance Prepaid rent Total current assets BUSINESS SOLUTIONS Comparative Balance Sheets March 31, 2022 December 31, 2821 $ 68,857 22,867 $ 48,372 5,668 704 2,005 588 1,116 1,665 825 95,568 825 57,118 Assets Cash Accounts receivable Inventory Computer supplies Prepaid Insurance Prepaid rent BUSINESS SOLUTIONS Comparative Balance Sheets Total current assets Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Total assets Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Total current liabilities Equity Common stock Retained earnings: Total liabilities and equity Required: March 31, December 31, 2022 $ 68,057 2021 22,867 $ 48,372 5,668 7041 2,005 1,110 580 1,665 825 825 95,568 57,110 8,000 8,000 (800) (400) 20,000 20,000 (2,500) (1,250) $ 120,268 $ 83,460 $0 $ 1,100 875 500 e 1,500 875 3,100 98,000 21,393 73,000 7,360 $ 120,268 $ 83,460 Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2022. Owner Santana Rey contributed $25,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,800 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2022 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities $ 0 0 0
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