Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. $24,707 18,093 42,800 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 1,160 Wages expense 3,050 Insurance expense 475 Rent expense 1,975 Computer supplies expense 1,255 Advertising expense 500 Mileage expense Repairs expense-Computer Total expenses Net income 24,347 $18, 453 Dec. 31, 2019 $51,922 5,568 0 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 78,537 Accounts receivable 24,067 Inventory 694 Computer supplies 2,055 Prepaid insurance 1,050 Prepaid rent 735 Total current assets 107,138 office equipment 7,500 Accumulated depreciation office equipment (700) Computer equipment 19, 100 Accumulated depreciation-Computer equipment (2,320) Total assets $130,718 Liabilities and Equity Accounts payable Wages payable 905 Unearned computer service revenue Total current liabilities 905 Equity Common stock 107,000 Retained earnings 22,813 Total liabilities and equity $130,718 490 1,635 735 60,350 7,500 (350) 19, 100 (1,160) $85, 440 $ 1,200 580 1,500 3,280 74,000 8,160 $85,440 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 $33,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $3,800 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) RRRRRRRRRRRR BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2020 Cash flows from operating activities Net income $ 18,453 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense-Computer equipment Depreciation expenseOffice equipment Increase in accounts receivable Increase in inventory Increase in computer supplies Increase in prepaid insurance Increase in wages payable Decrease in unearned computer service reve Decrease in accounts payable 18.453 Net cash provided by operating activities Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Cash paid for dividends Net cash used in financing activities Net increase in cash Cash balance at December 31, 2019 Cash balance at March 31, 2020 18.453