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 (Although the serial problem allowed for various ownership changes in earlier chapters, we will prepare the statement of cash flows using the following financial data.) BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2016 $ 24,907 18,093 Computer services revenue Net sales 43,000 Total revenue Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense $14,852 300 1,180 3,050 485 1,975 1,255 590 300 890 Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Repairs expense- Computer 24,877 Total expenses $ 18,123 Net income BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2015, and March 31, 2016 Mar. 31 2016 Dec. 31 2015 Assets Cash Accountsreceivable $ 76,527 $55,622 23,567 684 2,095 1,110 825 4,768 Inventory Computer supplies Prepaid insurance Prepaid rent 490 1,605 825 63,310 7,900 (300) 19,200 (1,180) 104,808 7,900 (600) 19,200 (2,360) Total current assets Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment $128,94888,930 Total assets Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue 0 1,110 560 2,100 965 Total current liabilities Equity Common stock Retained earnings 3,770 965 106,000 21,983 77,000 8,160 $128,948 88,930 Total liabilities and equity Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2016. Recall that the owner Santana Rey contributed $29,000 to the business in exchange for additional stock in the first quarter of 2016 and has received $4,300 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, 2016 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 balance at December 31, 2015 Cash balance at March 31, 2016