Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business. (Although the serial problem allowed for various ownership changes in earlier chapters, we will prepare the statement of cash flows using the following financial data.)

The Income Statement includes the following (all amounts in dollars):

Revenue is shown in the right column.

• Computer services revenue, 25,307.
• Net sales, 18,693.
• Total revenue, 44,000.

Expenses are shown in the left column.

• Cost of goods sold, 14,052.
• Depreciation expense Office equipment, 400.
• Depreciation expense Computer 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 shown in the right column.
• Net income, 18,833 shown in the right column.

Within Assets:

• Cash: for year 2016, 68,057; for year 2015, 48,372.
• Accounts receivable: for year 2016, 22,867; for year 2015, 5,668.
• Merchandise inventory: for year 2016, 704; for year 2015, 0.
• Computer supplies: for year 2016, 2,005; for year 2015, 580.
• Prepaid insurance: for year 2016, 1,110; for year 2015, 1,665.
• Prepaid rent: for year 2016, 825; for year 2015, 825.
• Office equipment: for year 2016, 8,000; for year 2015, 8,000.
• Accumulated depreciationOffice Equipment: for year 2016, (800); for year 2015, (400).
• Computer equipment: for year 2016, 20,000; for year 2015, 20,000.
• Accumulated depreciationComputer Equipment: for year 2016, (2,500); for year 2015, (1,250).
• Total assets: 120,268 for the year 2016; and 83,460 for the year 2015.

Within Liabilities and Equity:

• Accounts payable: for year 2016, 0; for year 2015, 1,100.
• Wages payable: for year 2016, 875; for year 2015, 500.
• Unearned computer service revenue: for year 2016, 0; for year 2015, 1,500.
• Total current liabilities: 875 for the year 2016; and 3,100 for the year 2015.
• Common stock: for year 2016, 98,000; for year 2015, 73,000.
• Retained earnings: for year 2016, 21,393; for year 2015, 7,360.
• Total liabilities and equity: 120,268 for the year 2016; and 83,460 for the year 2015.

Required

Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2016. Recall that owner Santana Rey contributed $25,000 to the business in exchange for additional stock in the first quarter of 2016 and has received $4,800 in cash dividends.