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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 $ 24,707 Net sales 17,993 Total revenue 42,700 Cost of goods sold Depreciation expense-Office equipment $ 14,752 370 1,170 Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Repairs expense-Computer Total expenses Net income 3,250 545 1,675 1,225 520 260 910 24,677 $ 18,023 BUSINESS SOLUTIONS Comparative Balance Sheets March 31, December 31, 2022 2021 Assets Cash Accounts receivable Inventory Computer supplies Prepaid insurance Prepaid rent Total current assets $ 77,657 23,667 $ 56,762 5,168 694 0 2,065 510 1,020 1,665 775 775 105,878 64,880 Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Total assets 7,900 7,900 (740) (370) 19,500 19,500 (2,340) (1,170) $ 130,198 $ 90,740 Liabilities and Equity Accounts payable Wages payable $ 0 $ 1,110 915 570 Unearned computer service revenue Total current liabilities Equity Common stock Retained earnings Total liabilities and equity 0 1,800 915 3,480 107,000 22,283 79,000 8,260 $ 130,198 $ 90,740 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 $28,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,000 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities BUSINESS SOLUTIONS 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 Cash balance at December 31, 2021 Cash balance at March 31, 2022
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