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		$ 24,607
Net sales		18,493
Total revenue		43,100
Cost of goods sold	$ 14,652
Depreciation expenseOffice equipment	330
Depreciation expenseComputer equipment	1,200
Wages expense	2,550
Insurance expense	475
Rent expense	2,075
Computer supplies expense	1,205
Advertising expense	590
Mileage expense	280
Repairs expenseComputer	890
Total expenses		24,247
Net income		$ 18,853

BUSINESS SOLUTIONS
Comparative Balance Sheets
	March 31, 2022	December 31, 2021
Assets
Cash	$ 77,507	$ 56,862
Accounts receivable	24,367	4,768
Inventory	604	0
Computer supplies	2,055	560
Prepaid insurance	1,060	1,605
Prepaid rent	785	785
Total current assets	106,378	64,580
Office equipment	7,800	7,800
Accumulated depreciationOffice equipment	(660)	(330)
Computer equipment	19,700	19,700
Accumulated depreciationComputer equipment	(2,400)	(1,200)
Total assets	$ 130,818	$ 90,550
Liabilities and Equity
Accounts payable	$ 0	$ 1,110
Wages payable	905	580
Unearned computer service revenue	0	1,600
Total current liabilities	905	3,290
Equity
Common stock	107,000	79,000
Retained earnings	22,913	8,260
Total liabilities and equity	$ 130,818	$ 90,550

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 $28,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,200 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)

BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2022 Cash flows from operating activities 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 60 $ EA 0 0