Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business. (Although the serial problem allowed for various ownership changes in earlier chapters, we will prepare the statement of cash flows using the following financial data.)

BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2016 Computer services revenue $ 24,807 Net sales 17,693 Total revenue 42,500 Cost of goods sold $ 14,552 Depreciation expenseOffice equipment 360 Depreciation expenseComputer equipment 1,230 Wages expense 2,550 Insurance expense 505 Rent expense 2,375 Computer supplies expense 1,265 Advertising expense 510 Mileage expense 230 Repairs expenseComputer 890 Total expenses 24,467 Net income $ 18,033

BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2015, and March 31, 2016 Mar. 31, 2016 Dec. 31, 2015 Assets Cash $ 79,097 $ 57,512 Accounts receivable 23,667 5,268 Inventory 654 0 Computer supplies 2,065 500 Prepaid insurance 1,090 1,575 Prepaid rent 735 735 Total current assets 107,308 65,590 Office equipment 7,800 7,800 Accumulated depreciationOffice equipment (720 ) (360 ) Computer equipment 19,200 19,200 Accumulated depreciationComputer equipment (2,460 ) (1,230 ) Total assets $ 131,128 $ 91,000 Liabilities and Equity Accounts payable $ 0 $ 1,170 Wages payable 935 570 Unearned computer service revenue 0 1,600 Total current liabilities 935 3,340 Equity Common stock 109,000 80,000 Retained earnings 21,193 7,660 Total liabilities and equity $ 131,128 $ 91,000 Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2016. Recall that the owner Santana Rey contributed $29,000 to the business in exchange for additional stock in the first quarter of 2016 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, 2016

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

Cash balance at December 31, 2015

Cash balance at March 31, 2016