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Serial Problem Business Solutions (Indirect) LO P2, P3 Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business

Serial Problem Business Solutions (Indirect) LO P2, P3

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 $ 24,307
Net sales 18,293
Total revenue 42,600
Cost of goods sold $ 14,252
Depreciation expenseOffice equipment 340
Depreciation expenseComputer equipment 1,160
Wages expense 3,150
Insurance expense 515
Rent expense 2,075
Computer supplies expense 1,255
Advertising expense 500
Mileage expense 300
Repairs expenseComputer 860
Total expenses 24,407
Net income $ 18,193

BUSINESS SOLUTIONS
Comparative Balance Sheets
December 31, 2019, and March 31, 2020
Mar. 31, 2020 Dec. 31, 2019
Assets
Cash $ 72,457 $ 52,972
Accounts receivable 24,367 5,068
Inventory 664 0
Computer supplies 2,015 490
Prepaid insurance 1,030 1,565
Prepaid rent 725 725
Total current assets 101,258 60,820
Office equipment 7,200 7,200
Accumulated depreciationOffice equipment (680 ) (340 )
Computer equipment 19,000 19,000
Accumulated depreciationComputer equipment (2,320 ) (1,160 )
Total assets $ 124,458 $ 85,520
Liabilities and Equity
Accounts payable $ 0 $ 1,120
Wages payable 905 540
Unearned computer service revenue 0 2,200
Total current liabilities 905 3,860
Equity
Common stock 102,000 74,000
Retained earnings 21,553 7,660
Total liabilities and equity $ 124,458 $ 85,520

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 $28,000 to the business in exchange for additional stock in the first quarter of 2020 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, 2020
Cash flows from operating activities
Adjustments to reconcile net income to net cash provided by operating activities
$0
Cash flows from investing activities
Net cash used in investing activities
Cash flows from financing activities
0
$0
Cash balance at December 31, 2019
Cash balance at March 31, 2020 $0

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