BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2022 Computer services revenue Net sales...

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BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2022 Computer services revenue Net sales Total revenue $ 24,507 17,793 42,300 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 $ 14,852 380 1,250 2,450 505 2,275 1,265 560 240 960 24,737 $ 17,563 BUSINESS SOLUTIONS Comparative Balance Sheets March 31, December 31, 2022 2021 Assets Cash Accounts receivable Inventory Computer supplies Prepaid insurance Prepaid rent Total current assets Office equipment $ 78,347 24,067 $ 56,902 5,068 644 0 2,105 570 1,100 1,605 775 775 107,038 64,920 7,400 7,400 Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment (760) (380) 19,400 (2,500) 19,400 (1,250) Prev 1 of Next > Assets Cash Accounts receivable Inventory Computer supplies Prepaid insurance Prepaid rent BUSINESS SOLUTIONS Comparative Balance Sheets March 31, December 31, 2022 $ 78,347 2021 $ 56,902 5,068 Total current assets. Office equipment Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-Computer equipment Total assets Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Total current liabilities Equity Common stock Retained earnings Total liabilities and equity Required: 24,067 644 0 2,105 1,100 570 1,605 775 775 107,038 64,920 7,400 7,400 (760) (380) 19,400 19,400 (1,250) (2,500) $ 130,578 $ 90,090 $ 0 $ 1,150 955 580 0 1,900 955 3,630 109,000 20,623 $ 130,578 79,000 7,460 $ 90,090 Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 20 Owner Santana Rey contributed $30,000 to the business in exchange for additional stock in the first quarter of 2022 and ha $4,400 in cash dividends. Note: Amounts to be deducted should be indicated with a minus sign. 28.529 NOV 27 Prev 1 of 1 Next > W Changes in current assets and current liabilities Increase in accounts receivable (18,999) Increase in inventory (644) Decrease in prepaid insurance 505 Decrease in accounts payable (1,150) Increase in wages payable 375 ok Decrease in unearned computer service revenue (1,900) Increase in computer supplies (2,105) ences Net cash used by operating activities Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Cash balance at December 31, 2021 Cash balance at March 31, 2022 $ (4,725) + 0 $ (4,725) $ (4,725) 0 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2022 Computer services revenue Net sales Total revenue $ 24,507 17,793 42,300 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 $ 14,852 380 1,250 2,450 505 2,275 1,265 560 240 960 24,737 $ 17,563 BUSINESS SOLUTIONS Comparative Balance Sheets March 31, December 31, 2022 2021 Assets Cash Accounts receivable Inventory Computer supplies Prepaid insurance Prepaid rent Total current assets Office equipment $ 78,347 24,067 $ 56,902 5,068 644 0 2,105 570 1,100 1,605 775 775 107,038 64,920 7,400 7,400 Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment (760) (380) 19,400 (2,500) 19,400 (1,250) Prev 1 of Next > Assets Cash Accounts receivable Inventory Computer supplies Prepaid insurance Prepaid rent BUSINESS SOLUTIONS Comparative Balance Sheets March 31, December 31, 2022 $ 78,347 2021 $ 56,902 5,068 Total current assets. Office equipment Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-Computer equipment Total assets Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Total current liabilities Equity Common stock Retained earnings Total liabilities and equity Required: 24,067 644 0 2,105 1,100 570 1,605 775 775 107,038 64,920 7,400 7,400 (760) (380) 19,400 19,400 (1,250) (2,500) $ 130,578 $ 90,090 $ 0 $ 1,150 955 580 0 1,900 955 3,630 109,000 20,623 $ 130,578 79,000 7,460 $ 90,090 Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 20 Owner Santana Rey contributed $30,000 to the business in exchange for additional stock in the first quarter of 2022 and ha $4,400 in cash dividends. Note: Amounts to be deducted should be indicated with a minus sign. 28.529 NOV 27 Prev 1 of 1 Next > W Changes in current assets and current liabilities Increase in accounts receivable (18,999) Increase in inventory (644) Decrease in prepaid insurance 505 Decrease in accounts payable (1,150) Increase in wages payable 375 ok Decrease in unearned computer service revenue (1,900) Increase in computer supplies (2,105) ences Net cash used by operating activities Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Cash balance at December 31, 2021 Cash balance at March 31, 2022 $ (4,725) + 0 $ (4,725) $ (4,725) 0