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		$ 24,807
Net sales		18,393
Total revenue		43,200
Cost of goods sold	$ 14,652
Depreciation expenseOffice equipment	320
Depreciation expenseComputer equipment	1,230
Wages expense	2,850
Insurance expense	545
Rent expense	1,775
Computer supplies expense	1,275
Advertising expense	580
Mileage expense	280
Repairs expenseComputer	910
Total expenses		24,417
Net income		$ 18,783

BUSINESS SOLUTIONS
Comparative Balance Sheets
	March 31, 2022	December 31, 2021
Assets
Cash	$ 74,877	$ 53,192
Accounts receivable	23,667	5,068
Inventory	664	0
Computer supplies	2,025	510
Prepaid insurance	1,040	1,595
Prepaid rent	795	795
Total current assets	103,068	61,160
Office equipment	7,600	7,600
Accumulated depreciationOffice equipment	(640)	(320)
Computer equipment	19,500	19,500
Accumulated depreciationComputer equipment	(2,460)	(1,230)
Total assets	$ 127,068	$ 86,710
Liabilities and Equity
Accounts payable	$ 0	$ 1,160
Wages payable	925	590
Unearned computer service revenue	0	2,400
Total current liabilities	925	4,150
Equity
Common stock	104,000	75,000
Retained earnings	22,143	7,560
Total liabilities and equity	$ 127,068	$ 86,710

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 $29,000 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.)