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Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business. BUSINESS SOLUTIONS Income Statement For Three Months Ended

Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business.

BUSINESS SOLUTIONS

Income Statement

For Three Months Ended March 31, 2012

Computer services revenue

$

24,407

Net sales

17,993

Total revenue

42,400

Cost of goods sold

$

14,352

Depreciation expenseOffice equipment

380

Depreciation expenseComputer equipment

1,220

Wages expense

2,750

Insurance expense

485

Rent expense

2,375

Computer supplies expense

1,235

Advertising expense

560

Mileage expense

310

Repairs expenseComputer

890

Total expenses

24,557

Net income

$

17,843

BUSINESS SOLUTIONS

Comparative Balance Sheets

December 31, 2011, and March 31, 2012

2012

2011

Assets

Cash

$

81,357

$

57,632

Accounts receivable

24,167

4,668

Merchandise inventory

694

0

Computer supplies

2,045

530

Prepaid insurance

1,050

1,605

Prepaid rent

795

795

Office equipment

7,900

7,900

Accumulated depreciationOffice equipment

(760

)

(380

)

Computer equipment

19,600

19,600

Accumulated depreciationComputer equipment

(2,440

)

(1,220

)

Total assets

$

134,408

$

91,130

Liabilities and Equity

Accounts payable

$

0

$

1,120

Wages payable

905

550

Unearned computer service revenue

0

1,800

Common stock

112,000

80,000

Retained earnings

21,503

7,660

Total liabilities and equity

$

134,408

$

91,130

Required:

Prepare a statement of cash flows from the financial data of Business Solutions provided above using the indirect method for the three months ended March 31, 2012. Recall that the owner Santana Rey contributed $32,000 to the business in exchange for additional stock in the first quarter of 2012 and has received $4,000 in cash dividends. (Amounts to be deducted should be indicated with a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) I have some of the question answered, need assitance to finish.

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