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 $ 24, 307 17,793 42.193 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue Net Sales Total revenue 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 Net income $14,552 300 1,250 2,85e 535 1.575 1,255 529 26e 88e 23,977 $18,123 Dec. 31, 2019 552,102 5,368 518 1.625 BUSINESS SOLUTIONS Comparative Balance Sheets Decesber 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 72,947 Accounts receivable 23,867 Tnventory 654 Computer supplies 2.885 Prepaid insurance 1,03e Prepaid rent 775 Total current assets 101, 358 Office equipment 7.600 Accumulated depreciation office equipment (600) Computer equipment 19.000 Accumulated depreciation-Computer equipment (2,500) Total assets $124,858 Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Total current liabilities Equity Common stock 103,000 Retained earnings 20,883 Total liabilities and equity $124,858 60. 388 7.608 (300) 19.ece (1,250) $85,430 $ 1.11 975 560 -2,200 3.87 74,000 2.560 $85,430 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 $29,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,800 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) Answer is complete but not entirely correct. BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2020 Cash flows from operating activities Net income $ 18,123 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense-Computer equipment 1,250 Depreciation expense-Office equipment o 300 Increase in accounts receivable (18.499) Increase in inventory 0 (654) Increase in computer supplies (1,575) Decrease in prepaid insurance 595 Decrease in accounts payable (1,110) Increase in wages payable 415 Decrease in unearned computer service revenue (2.200) $ (3,355) Net cash used by operating activities Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Cash paid for dividends 29,000 (10,899) 18.101 Net cash provided by financing activities Net increase in cash Cash balance at December 31, 2019 Cash balance at March 31, 2020 14,746 52,102 66,848 $