Serial Problem Business Solutions (Indirect) LO P1, P2, P3 Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data Income Statement $24,707 17.993 Net sales 42,700 Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Repairs expense-Computer Total expenses $14,452 320 1,188 2,358 485 1,775 1,205 268 950 23,517 $19,183 Net income BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2817, and March 31, 2018 Mar. 31, Dec. 31, 018 2017 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2017, and March 31, 2018 Mar. 31, Dec. 31, 2018 2017 Assets Cash Accounts receivable Inventory Computer supplies Prepaid insurance Prepaid rent Total current assets Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Total assets 83,107 $59,082 5,368 23,767 694 2,025 1,040 785 111,418 7,700 510 1,635 785 67,380 7,700 (640) (320) 20,000 20,000 $136,118 $93,580 0 $1,120 (2,360) (1,180) Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Total current liabilities Equity Common stock Retained earnings Total liabilities and equity 500 2,200 3,820 975 975 112,000 82,000 23,143768 7,760 $136,118 $93,580 Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2018. Owner Santana Rey contributed $30,000 to the business in exchange for additional stock in the first quarter of 2018 and has received $3,800 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, 2018 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 flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash balance at December 31, 2017 Cash balance at March 31. 2018