SP 12 Serial Problem Business Solutions (Indirect) (Algo) LO 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, 2022 Computer services revenue $ 24,707 Net sales Total revenue 18,693 43,400 Cost of goods sold Depreciation expense-Office equipment $ 14,052 390 1,250 Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Repairs expense-Computer Total expenses Net income 2,850 525 1,675 1,275 590 290 880 23,777 $ 19,623 BUSINESS SOLUTIONS Comparative Balance Sheets March 31, 2022 December 31, 2021 Assets Cash Accounts receivable Inventory Computer supplies Prepaid insurance Prepaid rent 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 24,167 634 $ 79,227 $ 59,172 4,868 0 2,095 530 1,090 1,565 765 765 107,978 66,900 7,000 7,000 (780) (390) 19,000 (2,500) $ 130,698 $ 0 915 915 19,000 (1,250) $ 91,260 $ 1,160 540 2,400 4,100 79,000 8,160 106,000 23,783 $ 130,698 $ 91,260 Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2022. Owner Santana Rey contributed $27,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,000 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2022 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash balance at December 31, 2021 Cash balance at March 31, 2022 $ 0 0 $ 0 0