Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data $25, 107 18,493

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data $25, 107 18,493 43,600 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue Net sales Total revenue Cost of goods sold $14,352 Depreciation expense-office equipment 350 Depreciation expense-Computer equipment 1.220 Wages expense 2,350 Insurance expense Rent expense 1.675 Computer supplies expense 1,215 Advertising expense 510 Mileage expense 240 Repairs expense-Computer 950 Total expenses Net Income 465 23,327 $20, 273 Dec. 31, 2019 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 82,027 Accounts receivable 24, 167 Inventory 624 Computer supplies 2,055 Prepaid insurance 1,040 Prepaid rent 825 Total current assets 110, 738 office equipment 8,000 Accumulated depreciation-office equipment (700) Computer equipment 19,900 Accumulated depreciation-Computer equipment (2,440) Total assets $135, 498 Liabilities and Equity Accounts payable $ Wages payable 965 Unearned computer service revenue Total current liabilities 965 Equity Common stock 110,000 Retained earnings 24,533 Total liabilities and equity $135, 498 $56, 552 5,168 0 550 1,595 825 64,690 8,000 (350) 19,900 (1,220) $91,020 co $ 1.180 580 1,900 3, 660 79,000 8, 360 $91, 020 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 $31,000 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 $ 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

6th Edition

9780470128848

More Books

Students also viewed these Accounting questions

Question

What are the strengths and weaknesses of arguments by analogy?

Answered: 1 week ago

Question

Customers have to repeat information they have already provided.

Answered: 1 week ago