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

BUSINESS SOLUTIONS
Income Statement
For Three Months Ended March 31, 2020
Computer services revenue				$	24,707
Net sales					18,393
Total revenue					43,100
Cost of goods sold	$	14,652
Depreciation expenseOffice equipment		360
Depreciation expenseComputer equipment		1,230
Wages expense		2,950
Insurance expense		485
Rent expense		1,975
Computer supplies expense		1,275
Advertising expense		590
Mileage expense		310
Repairs expenseComputer		920
Total expenses					24,747
Net income				$	18,353

BUSINESS SOLUTIONS
Comparative Balance Sheets
December 31, 2019, and March 31, 2020
	Mar. 31, 2020						Dec. 31, 2019
Assets
Cash		$	79,737					$	58,002
Accounts receivable			24,367						4,968
Inventory			674						0
Computer supplies			2,085						550
Prepaid insurance			1,060						1,645
Prepaid rent			815						815
Total current assets			108,738						65,980
Office equipment			7,500						7,500
Accumulated depreciationOffice equipment			(720	)					(360	)
Computer equipment			19,700						19,700
Accumulated depreciationComputer equipment			(2,460	)					(1,230	)
Total assets		$	132,758					$	91,590
Liabilities and Equity
Accounts payable		$	0					$	1,130
Wages payable			945						600
Unearned computer service revenue			0						2,000
Total current liabilities			945						3,730
Equity
Common stock			110,000						80,000
Retained earnings			21,813						7,860
Total liabilities and equity		$	132,758					$	91,590

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 $30,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,400 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)

$24,707 18,393 43,100 For Three Months Ended March 31, 2020 Computer services revenue Net sales Total revenue Cost of goods sold $ 14,652 Depreciation expense-office equipment 360 Depreciation expense-Computer equipment 1,230 Wages expense 2,950 Insurance expense 485 Rent expense 1,975 Computer supplies expense 1,275 Advertising expense 590 Mileage expense 310 Repairs expense-Computer 920 Total expenses Net income 24,747 $18,353 Dec. 31, 2019 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 79,737 Accounts receivable 24,367 Inventory 674 Computer supplies 2,085 Prepaid insurance 1,060 Prepaid rent 815 Total current assets 108,738 Office equipment 7,500 Accumulated depreciation-office equipment (720) Computer equipment 19,700 Accumulated depreciation-Computer equipment (2,460) Total assets $ 132,758 Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Total current liabilities 945 Equity Common stock 110,000 Retained earnings 21,813 Total liabilities and equity $132,758 $58,002 4,968 0 550 1,645 815 65,980 7,500 (360) 19,700 (1,230) $91,590 945 $ 1,130 600 2,000 3,730 80,000 7,860 $91,590 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 $30,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,400 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 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense-Office equipment Depreciation expense-Computer equipment Increase in accounts receivable Increase in inventory Increase in computer supplies Decrease in prepaid insurance Decrease in accounts payable Increase in wages payable 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, 2019 Cash balance at March 31, 2020