w Serial Problem Business Solutions (Indirect) 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. $ 24,407 17,893 42,300 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue 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 $14,952 370 1,200 2,450 555 1,975 1,295 540 310 890 24,537 $17,763 Dec. 31, 2019 $56,262 4,768 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 75,337 Accounts receivable 24,267 Inventory 624 Computer supplies 2,045 Prepaid insurance 1,080 Prepaid rent 775 Total current assets 104,128 Office equipment 7,500 Accumulated depreciation-office equipment (740) Computer equipment 19,800 Accumulated depreciation-Computer equipment (2,400) Total assets $128,288 Liabilities and Equity Accounts payable $ Wages payable 965 Unearned computer service revenue 0 Total current liabilities 965 Equity Common stock 106,000 Retained earnings 21,323 Total liabilities and equity $128, 288 510 1,585 775 63,900 7,500 (370) 19,800 (1,200) $89,630 $ 1,120 550 1,700 3,370 78,000 8,260 $89,630 Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2020. Owner Santana Rey contributed $28,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,700 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2020 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Cash paid for dividends Cash received from stock issuance Decrease in accounts payable Decrease in accounts receivable $ 0 Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities 0 $ 0 Cash balance at December 31, 2019 Cash balance at March 31, 2020 $ 0