Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data.

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 $$31,000$ to the business in exchange for additional stock in the first quarter of $2022$ and has received $$4,300$ in cash dividends.

Note: Amounts to be deducted should be indicated with a minus sign.February $26$ The company paid cash to Lyn Addie for eight days' work at $$120$ per day.

March $25$ The company sold merchandise with a $$2,800$ cost for $$2,900$ on credit to Wildcat Services, invoice dated March $25.$

Required:

Assume that Lyn Addie is an unmarried employee. Her $$960$ of wages have deductions for FICA Social Security taxes, FICA Medicare taxes, and federal income taxes. Her federal income taxes for this pay period total $$96.$ Compute her net pay for the eight days' work paid on February $26.$

Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part $1.$

Record the journal entry to reflect the $($employer$)$ payroll tax expenses for the February $26$ payroll payment. Assume Lyn Addie has not met earnings limits for FUTA and SUTA $($the FUTA rate is $0\mathrm{.}6\%$ and the SUTA rate is $5\mathrm{.}4\%$ for the company$).$

Record the entries for the merchandise sold on March $25$ if a $4\%$ sales tax rate applies.