Question
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 |
|
|
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| 17,993 |
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|
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Total revenue |
|
|
|
| 42,400 |
Cost of goods sold | $ | 14,352 |
|
|
|
Depreciation expenseOffice equipment |
| 380 |
|
|
|
Depreciation expenseComputer equipment |
| 1,220 |
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|
|
Wages expense |
| 2,750 |
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|
|
Insurance expense |
| 485 |
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|
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Rent expense |
| 2,375 |
|
|
|
Computer supplies expense |
| 1,235 |
|
|
|
Advertising expense |
| 560 |
|
|
|
Mileage expense |
| 310 |
|
|
|
Repairs expenseComputer |
| 890 |
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|
|
|
|
|
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Total expenses |
|
|
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| 24,557 |
|
|
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Net income |
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| $ | 17,843 |
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BUSINESS SOLUTIONS | |||||||
Comparative Balance Sheets | |||||||
December 31, 2011, and March 31, 2012 | |||||||
| 2012 |
| 2011 | ||||
|
| ||||||
Assets |
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|
|
|
|
|
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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 |
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Liabilities and Equity |
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|
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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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