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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 expenseOffice equipment | 400 | |
Depreciation expenseComputer equipment | 1,250 | |
Wages expense | 3,250 | |
Insurance expense | 555 | |
Rent expense | 2,475 | |
Computer supplies expense | 1,305 | |
Advertising expense | 600 | |
Mileage expense | 320 | |
Repairs expenseComputer | 960 | |
Total expenses | 25,167 | |
Net income | $ 18,833 |
BUSINESS SOLUTIONS | ||
Comparative Balance Sheets | ||
March 31, 2022 | December 31, 2021 | |
---|---|---|
Assets | ||
Cash | $ 68,057 | $ 48,372 |
Accounts receivable | 22,867 | 5,668 |
Inventory | 704 | 0 |
Computer supplies | 2,005 | 580 |
Prepaid Insurance | 1,110 | 1,665 |
Prepaid rent | 825 | 825 |
Total current assets | 95,568 | 57,110 |
Office equipment | 8,000 | 8,000 |
Accumulated depreciationOffice equipment | (800) | (400) |
Computer equipment | 20,000 | 20,000 |
Accumulated depreciationComputer equipment | (2,500) | (1,250) |
Total assets | $ 120,268 | $ 83,460 |
Liabilities and Equity | ||
Accounts payable | $ 0 | $ 1,100 |
Wages payable | 875 | 500 |
Unearned computer service revenue | 0 | 1,500 |
Total current liabilities | 875 | 3,100 |
Equity | ||
Common stock | 98,000 | 73,000 |
Retained earnings | 21,393 | 7,360 |
Total liabilities and equity | $ 120,268 | $ 83,460 |
Required: 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.)
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