Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data.

BUSINESS SOLUTIONSIncome StatementFor Three Months Ended March 31, 2018Computer services revenue $24,607Net sales 18,193Total revenue 42,800Cost of goods sold$14,952 Depreciation expenseOffice equipment 300 Depreciation expenseComputer equipment 1,240 Wages expense 2,750 Insurance expense 465 Rent expense 1,875 Computer supplies expense 1,245 Advertising expense 580 Mileage expense 290 Repairs expenseComputer 900 Total expenses 24,597Net income $18,203

BUSINESS SOLUTIONSComparative Balance SheetsDecember 31, 2017, and March 31, 2018 Mar. 31, 2018 Dec. 31, 2017Assets Cash$85,217 $59,812 Accounts receivable 24,367 4,868 Inventory 644 0 Computer supplies 2,025 490 Prepaid insurance 1,070 1,635 Prepaid rent 765 765 Total current assets 114,088 67,570 Office equipment 7,300 7,300 Accumulated depreciationOffice equipment (600) (300)Computer equipment 19,200 19,200 Accumulated depreciationComputer equipment (2,480) (1,240)Total assets$137,508 $92,530 Liabilities and Equity Accounts payable$0 $1,110 Wages payable 945 560 Unearned computer service revenue 0 2,000 Total current liabilities 945 3,670 Equity Common stock 115,000 81,000 Retained earnings 21,563 7,860 Total liabilities and equity$137,508 $92,530

Required: