Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business. (Although the serial problem allowed for various ownership changes in earlier chapters, we will prepare the statement of cash flows using the following financial data.)

Required
Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2012. Recall that the owner Santana Rey contributed $25,000 to the business in exchange for additional stock in the first quarter of 2012 and has received $4,800 in cashdividends.

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BUSINESS SOLUTIONS Comparative Balance Sheets December 31,201I, and March 31, 2012 2011 Cash Accounts receivable Merchandise inventory $ 68,057 $48,372 5,668 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31,2012 Computer services revenue Net sales Total revenue.... Cost of goods sold 25307 Computer supplies 18,693 Prepaid insurance 44,000 Prepaid rent 1.665 $14.052 Office equipment -..8,000 Computer equipment Computer equipment. Wages expense Computer equipment Total assets Liabilities and Equity Accounts payable 2.475 Rent expense Computer supplies expense Advertising expense t...-.... $0 1,100 Unearned computer service revenue Repairs expense Computer960 98,000 73,000 25.167 Retained $18,833 otl liabilities and equity. earnings Net income $120,268 $83.460