SP $12$ Serial Problem Business Solutions $($Indirect$)($Algo$)$ LO P$2,$ P$3$

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 $31,2022$

Computer services revenue $ $24,307$

Net sales $18,293$

Total revenue $42,600$

Cost of goods sold $ $14,852$

Depreciation expense$$Office equipment $350$

Depreciation expense$$Computer equipment $1,210$

Wages expense $3,150$

Insurance expense $535$

Rent expense $2,375$

Computer supplies expense $1,265$

Advertising expense $530$

Mileage expense $290$

Repairs expense$$Computer $880$

Total expenses $25,437$

Net income $ $17,163$

BUSINESS SOLUTIONS

Comparative Balance Sheets

March $31,2022$ December $31,2021$

Assets

Cash $ $68,707$ $ $53,932$

Accounts receivable $24,3674,668$

Inventory $6840$

Computer supplies $2,055500$

Prepaid insurance $1,1101,565$

Prepaid rent $825825$

Total current assets $97,74861,490$

Office equipment $7,8007,800$

Accumulated depreciation$$Office equipment $(700)(350)$

Computer equipment $19,20019,200$

Accumulated depreciation$$Computer equipment $(2,420)(1,210)$

Total assets $ $121,628$ $ $86,930$

Liabilities and Equity

Accounts payable $ $0$ $ $1,150$

Wages payable $905520$

Unearned computer service revenue $02,400$

Total current liabilities $9054,070$

Equity

Common stock $100,00075,000$

Retained earnings $20,7237,860$

Total liabilities and equity $ $121,628$ $ $86,930$

Required:

Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March $31,2022.$ Owner Santana Rey contributed $$25,000$ to the business in exchange for additional stock in the first quarter of $2022$ and has received $$4,300$ in cash dividends.

Note: Amounts to be deducted should be indicated with a minus sign.