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 data. BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2022 Computer services revenue Net sales Total revenue $ 24,307 17,793 42,100 Cost of goods sold Depreciation expense-Office equipment $ 15,052 340 Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Repairs expense-Computer Total expenses Net income 1,180 3,050 535 2,375 1,285 510 220 940 25,487 $ 16,613 Assets Cash Accounts receivable Inventory Computer supplies Prepaid insurance Prepaid rent BUSINESS SOLUTIONS Comparative Balance Sheets 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 March 31, December 31, 2022 $ 80,877 24,167 2021 $ 57,962 5,068 0 604 2,045 520 1,030 1,625 805 805 109,528 65,980 7,700 7,700 (680) (340) 19,000 19,000 (1,180) (2,360) $ 133,188 $ 91,160 $ 0 $ 1,110 915 590 0 2,000 915 3,700 112,000 20,273 80,000 7,460 $ 133,188 $ 91,160 Ces For Quarter Ended March 31, 2022 Cash flows from operating activities 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 $ 0 0 $ 0