Reference no: EM132318518
Question
Santana Rey, owner of Business Solutions, decides to make 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 $24,407
Net sales 18,693
Total revenue 43,100
Cost of goods sold$14,052
Depreciation expense-Office equipment 340
Depreciation expense-Computer equipment 1,240
Wages expense 3,050
Insurance expense 455
Rent expense 1,775
Computer supplies expense 1,305
Advertising expense 560
Mileage expense 300
Repairs expense-Computer 950
Total expenses 24,027
Net income $19,073
BUSINESS SOLUTIONS
Comparative Balance Sheets
December 31, 2017, and March 31, 2018 Mar. 31, 2018 Dec. 31, 2017
Assets Cash $81,797 $59,492
Accounts receivable 24,267 4,868
Inventory 674 0
Computer supplies 2,065 490
Prepaid insurance 1,050 1,655
Prepaid rent 755 755
Total current assets 110,608 67,260
Office equipment 7,700 7,700
Accumulated depreciation-Office equipment (680) (340)
Computer equipment 19,900 19,900
Accumulated depreciation-Computer equipment (2,480) (1,240)
Total assets $135,048 $93,280
Liabilities and Equity Accounts payable $0 $1,120
Wages payable 915 500
Unearned computer service revenue 0 1,500
Total current liabilities 915 3,120
Equity Common stock 111,000 82,000
Retained earnings 23,133 8,160
Total liabilities and equity $135,048 $93,280
Required:
What is the statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2018. Owner Santana Rey contributed $29,000 to the business in exchange for additional stock in the first quarter of 2018 and has received $4,100 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)