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. $25,007 17,793 42.800 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue Net sales Total revenue Cost of goods sold $14,252 Depreciation expense-office equipment 350 Depreciation expense-Computer equipment 1.160 Waged expense 2,650 Insurance expense Rent expense 2,275 Computer supplies expense 1.235 Advertising expense Mileage expense Repair expense Computer Total expenses Net Income 515 260 24.167 $18.633 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 1, 2020 Mar. 31, 2020 Dec 31, 2019 735 735 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Dec. 31, 2019 Assets Cash $ 82,667 $60,602 Accounts receivable 24,367 4,968 Inventory 614 Computer supplies 2.065 570 Prepaid insurance 1.080 1.635 Prepaid rent Total current assets 111,528 68,510 office equipment 7,400 7.400 Accumulated depreciation-office equipment (700) (350) Computer equipment 19,300 19.300 Accumulated depreciation-Computer equipment (2,320) (1,160) Total assets $135,208 $93,700 Liabilities and Equity Accounts payable $1,170 Wages payable Unearned computer service revenue 1,900 Total current liabilities 3,640 Equity Comon stock 112.000 82.000 Retained earnings 22,293 8,060 Total liabilities and equity $135,208 $93,700 510 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.) 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 fows from operating activities Adjustments to reconcile net income to nel cash provided by operating activities 1 Cash flows from investing activities d 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, 2019 Cash balance at March 31, 2020