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 $ 25,307 Net sales 18,693 Total revenue 44,000 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 Assets Cash Accounts receivable Inventory Computer supplies. Prepaid Insurance Prepaid rent $ 14,052 400 1,250 3,250 555 2,475 1,305 600 320 960 25,167 $ 18,833 BUSINESS SOLUTIONS Comparative Balance Sheets March 31, 2022 December 31, 2021 $ 68,057 22,867 $ 48,372 5,668 704 0 2,005 580 1,110 1,665 825 825 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 95,568 8,000 (800) 20,000 (2,500) $ 120,268 $ 0 875 0 875 98,000 21,393 $ 120,268 57,110 8,000 (400) 20,000 (1,250) $ 83,460 $ 1,100 500 1,500 3,100 73,000 7,360 $ 83,460 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 $25,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,800 in cash dividends. Note: 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

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter1: Introduction To Business Activities And Overview Of Financial Statements And The Reporting Process
Section: Chapter Questions
Problem 31E
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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
$ 25,307
Net sales
18,693
Total revenue
44,000
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
Assets
Cash
Accounts receivable
Inventory
Computer supplies.
Prepaid Insurance
Prepaid rent
$ 14,052
400
1,250
3,250
555
2,475
1,305
600
320
960
25,167
$ 18,833
BUSINESS SOLUTIONS
Comparative Balance Sheets
March 31, 2022
December 31,
2021
$ 68,057
22,867
$ 48,372
5,668
704
0
2,005
580
1,110
1,665
825
825
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
95,568
8,000
(800)
20,000
(2,500)
$ 120,268
$ 0
875
0
875
98,000
21,393
$ 120,268
57,110
8,000
(400)
20,000
(1,250)
$ 83,460
$ 1,100
500
1,500
3,100
73,000
7,360
$ 83,460
Transcribed Image Text: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 $ 25,307 Net sales 18,693 Total revenue 44,000 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 Assets Cash Accounts receivable Inventory Computer supplies. Prepaid Insurance Prepaid rent $ 14,052 400 1,250 3,250 555 2,475 1,305 600 320 960 25,167 $ 18,833 BUSINESS SOLUTIONS Comparative Balance Sheets March 31, 2022 December 31, 2021 $ 68,057 22,867 $ 48,372 5,668 704 0 2,005 580 1,110 1,665 825 825 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 95,568 8,000 (800) 20,000 (2,500) $ 120,268 $ 0 875 0 875 98,000 21,393 $ 120,268 57,110 8,000 (400) 20,000 (1,250) $ 83,460 $ 1,100 500 1,500 3,100 73,000 7,360 $ 83,460
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 $25,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,800
in cash dividends.
Note: 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
Transcribed Image Text: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 $25,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,800 in cash dividends. Note: 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
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