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.)

BUSINESS SOLUTIONS

Income Statement

For Three Months Ended March 31, 2017

BUSINESS SOLUTIONS
Comparative Balance Sheets
December 31, 2016, and March 31, 2017

Required
Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2017. Recall that owner Santana Rey contributed $25,000 to the business in exchange for additional stock in the first quarter of 2017 and has received $4,800 in cash dividends?

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Net sales . Total revenue.... $25,307 8,693 44,000 2 s sold. expense-Office Wages expense . expense Mileage expense... Total expenses.... Net income. 25,167 $18,833 1 Mar. 31, 2017 Dec. 31,2016 Assets Cash Accounts receivable Inventory $68,057 22,867 704 2002 I10 825 95,568 8,000 $48,372 5,668 Prepaid insurance 1,665 825 57,110 8,000 e exp.- Accumulated depreciation-Office (800) 20,000 es Computer equipment Accumulated depreciation 20,000 Computer equipment Total assets. . (2.500) (1250) Liabilities and Equity Wages payable Unearned computer service revenue.... Total current liabilities $1,100 500 1,500 3,100 875 875 Equity Common stock 98,000 21.393 73,000 7360 Total liabilities and equity