Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. $25,107 17,993 43, 100 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue Net sales Total revenue Cost of goods sold $14,852 Depreciation expense-Office equipment 330 Depreciation expense-Computer equipment 1,170 Wages expense Insurance expense 475 1,675 Computer supplies expense Advertising expense 520 Mileage expense 250 Repairs expense-Computer 870 Total expenses Net income 2,750 Rent expensa 1,305 24,197 $18,903 4,668 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Dec. 31, 2019 Assets Cash $ 85,777 $60,302 Accounts receivable 24,567 Inventory 704 Computer supplies 2,015 560 Prepaid insurance 1,070 1,595 Prepaid rent 735 735 Total current assets 114,868 67,860 Office equipment 8,000 8,000 Accumulated depreciation-office equipment (660) (330) Dec. 31, 2019 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 85, 777 Accounts receivable 24,567 Inventory 704 Computer supplies 2,015 Prepaid insurance 1,070 Prepaid rent 735 Total current assets 114,868 Office equipment 8,000 Accumulated depreciation-office equipment (660) Computer equipment 19,400 Accumulated depreciation-Computer equipment (2,340) Total assets $139,268 Liabilities and Equity Accounts payable $ O Wages payable 905 Unearned computer service revenue 0 Total current liabilities 905 Equity Common stock 116,000 Retained earnings 22,363 Total liabilities and equity $139,268 $60,302 4,668 0 560 1,595 735 67,860 8,000 (330) 19,400 (1,170) $93,760 $ 1,180 520 2,500 4,200 82,000 7,560 $93,760 Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2020. Owner Santana Rey contributed $34,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,100 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2020. Owner Santana Rey contributed $34,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,100 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2020 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities $ 0 Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities For Quarter Ended March 31, 2020 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities $ 0 Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities 0 $ 0 Cash balance at December 31, 2019 Cash balance at March 31, 2020 $ 0