SP 16 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		$ 24,507
Net sales		17,793
Total revenue		42,300
Cost of goods sold	$ 14,152
Depreciation expenseOffice equipment	330
Depreciation expenseComputer equipment	1,160
Wages expense	2,450
Insurance expense	525
Rent expense	1,875
Computer supplies expense	1,255
Advertising expense	560
Mileage expense	280
Repairs expenseComputer	880
Total expenses		23,467
Net income		$ 18,833

BUSINESS SOLUTIONS
Comparative Balance Sheets
	March 31, 2022	December 31, 2021
Assets
Cash	$ 74,057	$ 53,152
Accounts receivable	24,067	5,468
Inventory	644	0
Computer supplies	2,045	560
Prepaid insurance	1,010	1,595
Prepaid rent	785	785
Total current assets	102,608	61,560
Office equipment	7,900	7,900
Accumulated depreciationOffice equipment	(660)	(330)
Computer equipment	20,000	20,000
Accumulated depreciationComputer equipment	(2,320)	(1,160)
Total assets	$ 127,528	$ 87,970
Liabilities and Equity
Accounts payable	$ 0	$ 1,140
Wages payable	935	570
Unearned computer service revenue	0	1,900
Total current liabilities	935	3,610
Equity
Common stock	104,000	76,000
Retained earnings	22,593	8,360
Total liabilities and equity	$ 127,528	$ 87,970

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 $28,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,600 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)

Statement of Cash Flows (Indirect) 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 Cash balance at March 31, 2022