Serial Problem Business Solutions (Indirect) LO P1, P2, P3

Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data.

BUSINESS SOLUTIONS
Income Statement
For Three Months Ended March 31, 2018
Computer services revenue				$	25,307
Net sales					18,693
Total revenue					44,000
Cost of goods sold	$	14,052
Depreciation expenseOffice equipment		400
Depreciation expenseComputer equipment		1,250
Wages expense		3,250
Insurance expense		555
Rent expense		2,475
Computer supplies expense		1,305
Advertising expense		600
Mileage expense		320
Repairs expenseComputer		960
Total expenses					25,167
Net income				$	18,833

BUSINESS SOLUTIONS
Comparative Balance Sheets
December 31, 2017, and March 31, 2018
	Mar. 31, 2018				Dec. 31, 2017
Assets
Cash	$	68,057			$	48,372
Accounts receivable		22,867				5,668
Inventory		704				0
Computer supplies		2,005				580
Prepaid Insurance		1,110				1,665
Prepaid rent		825				825
Total current assets		95,568				57,110
Office equipment		8,000				8,000
Accumulated depreciationOffice equipment		(800	)			(400	)
Computer equipment		20,000				20,000
Accumulated depreciationComputer equipment		(2,500	)			(1,250	)
Total assets	$	120,268			$	83,460
Liabilities and Equity
Accounts payable	$	0			$	1,100
Wages payable		875				500
Unearned computer service revenue		0				1,500
Total current liabilities		875				3,100
Equity
Common stock		98,000				73,000
Retained earnings		21,393				7,360
Total liabilities and equity	$	120,268			$	83,460

Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2018. Owner Santana Rey contributed $25,000 to the business in exchange for additional stock in the first quarter of 2018 and has received $4,800 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)