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, 2022. Recall that owner Santana Rey contributed $25,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,800 in cash dividends.

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BUSINESS SOLUTIONS Comparative Balance Sheets Mar. 31, 2022 Dec. 31, 2021 Assets Cash .... $ 68,057 $48,372 Accounts receivable.. 22,867 5,668 Inventory..... Computer supplies... Prepaid insurance.. Prepaid rent ... 704 2,005 580 1,110 1,665 825 BUSINESS SOLUTIONS 825 ..... Income Statement Total current assets 95,568 57,110 Office equipment .. Accumulated depreciation- Office equipment.... Computer equipment. Accumulated depreciation- Computer equipment..... Total assets..... For Three Months Ended March 31, 2022 8,000 8,000 Computer services revenue.. Net sales...... $25,307 (800) 20,000 (400) 20,000 18,693 Total revenue 44,000 Cost of goods sold ... Depreciation expense- Office equipment. Depreciation expense- Computer equipment..... Wages expense... $14,052 (2,500) $120,268 (1,250) $83,460 400 .... .. Liabilities and Equity Accounts payable..... Wages payable..... Unearned computer service 1,250 $ $ 1,100 3,250 875 500 Insurance expense. 555 Rent expense 2,475 1,500 revenue..... Computer supplies expense.. Advertising expense. Mileage expense 1,305 Total current liabilities 875 3,100 600 320 Equity Common stock.... Retained earnings Total liabilities and equity..... 98,000 73,000 Repairs expense-Computer.. Total expenses Net income. 960 7,360 $83.460 wate Wi 25,167 21,393 $18,833 $120,268 Go to Settinas