Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. $24,607 17,893 42,500 lo BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue Net sales Total revenue Cost of goods sold $14,452 Depreciation expense-Office equipment 300 Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Repairs expense-Computer Total expenses Net income N N NOW 0 0 24,527 $17,973 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Dec. 31, 2019 Assets Cash $ 78,187 $52,522 Accounts receivable 24,267 4,968 Inventory 654 Computer supplies 2,095 Prepaid insurance 1,090 Prepaid rent 795 Total current assets 107,088 60, 440 Office equipment 7,100 7,100 Accumulated depreciation-office equipment (600) (300) Computer equipment 19,000 19,000 Accumulated depreciation-Computer equipment (2,320) (1,160) Total assets $130,268 $85,080 Liabilities and Equity Accounts payable Wages payable 580 Unearned computer service revenue 1,500 Total current liabilities Equity Common stock 108,000 74,000 Retained earnings 21,333 7,860 Total liabilities and equity $130, 268 $85,080 935 935 3,220 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 $34,000 to the business in exchange for additional stock in the first quarter of 2020 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, 2020 Cash flows from operating activities Net income $ 17,973 Adjustments to reconcile net income to net cash provided by operating activities Increase in accounts receivable Increase in inventory Increase in computer supplies Decrease in prepaid insurance Decrease in accounts payable Increase in wages payable Decrease in unearned computer service revenue Depreciation expense-Computer equipment 17,973 Net cash used 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 $ 17,973 Net cash provided by financing activities Net increase in cash Cash balance at December 31, 2019 Cash balance at March 31, 2020 $ 17,973