SP 12 Serial Problem Business Solutions (Indirect) (Algo) 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, 2022 Computer services revenue $ 24,407 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 $ 14,752 320 1,150 2,550 515 2,175 1,255 540 280 950 18,093 42,500 24,487 $ 18,013 Assets Cash Accounts receivable Inventory Computer supplies Prepaid insurance Prepaid rent BUSINESS SOLUTIONS Comparative Balance Sheets March 31, December 31, 2022 Total current assets Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Total assets Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Total current liabilities Equity Common stock Retained earnings Total liabilities and equity Required: 2021 $ 80,397 $ 53,312 23,867 4,968 634 0 2,085 520 1,060 1,635 755 755 108,798 61,190 7,100 7,100 (640) (320) 19,300 19,300 (2,300) (1,150) $ 132,258 $ 86,120 $ 0 $ 1,130 885 0 885 530 1,900 3,560 110,000 21,373 $ 132,258 75,000 7,560 $ 86,120 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 $35,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,200 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2022 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash balance at December 31, 2021 Cash balance at March 31, 2022