Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. $ 25,007 18,193 43,200 310 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2018 Computer services revenue Net sales Total revenue Cost of goods sold $14,452 Depreciation expense-office equipment Depreciation expense-Computer equipment 1,170 Wages expense 3,150 Insurance expense Rent expense 1,875 Computer supplies expense 1,265 Advertising expense 510 Mileage expense 290 Repairs expense-Computer Total expenses Net income 465 920 24,407 $18,793 Dec. 31, 2017 $55,182 5,368 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2017, and March 31, 2018 Mar. 31, 2018 Assets Cash $ 82,207 Accounts receivable 24,367 Inventory 674 Computer supplies 2,095 Prepaid insurance 1,110 Prepaid rent 805 Total current assets 111,258 Office equipment 7,900 Accumulated depreciation-office equipment (620) Computer equipment 19,100 Accumulated depreciation-Computer equipment (2,340) Total assets $135,298 Liabilities and Equity Accounts payable $ 0 Wages payable 945 Unearned computer service revenue 0 Total current liabilities Equity Common stock 112,000 Retained earnings 22,353 Total liabilities and equity $135,298 490 1,615 805 63,460 7,900 (310) 19,100 (1,170) $88,980 $ 1,130 590 2,200 3,920 77,000 8,060 $88,980 Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2018. Owner Santana Rey contributed $35,000 to the business in exchange for additional stock in the first quarter of 2018 and has received $4,500 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, 2018 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense-Office equipment Depreciation expense-Computer equipment Decrease in accounts payable Increase in accounts receivable Increase in inventory Increase in computer supplies Increase in wages payable Decrease in accounts payable Increase in wages payable Decrease in unearned computer service revenue $ 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 $ Cash balance at December 31, 2017 Cash balance at March 31, 2018