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 $ 24,707 Net sales 18,093 Total revenue 42,800 Cost of goods sold $ 14,952 Depreciation expense—Office equipment 340 Depreciation expense—Computer equipment 1,250 Wages expense 2,350 Insurance expense 535 Rent expense 1,675 Computer supplies expense 1,295 Advertising expense 510 Mileage expense 310 Repairs expense—Computer 920 Total expenses 24,137 Net income $ 18,663 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2017, and March 31, 2018 Mar. 31, 2018 Dec. 31, 2017 Assets Cash $ 83,217 $ 57,732 Accounts receivable 23,867 5,468 Inventory 604 0 Computer supplies 2,035 570 Prepaid insurance 1,070 1,645 Prepaid rent 805 805 Total current assets 111,598 66,220 Office equipment 7,600 7,600 Accumulated depreciation—Office equipment (680 )(340 ) Computer equipment 19,500 19,500 Accumulated depreciation—Computer equipment (2,500 ) (1,250 ) Total assets $ 135,518 $ 91,730 Liabilities and Equity Accounts payable $ 0 $ 1,180 Wages payable 895 590 Unearned computer service revenue 0 1,800 Total current liabilities 895 3,570 Equity Common stock 112,000 80,000 Retained earnings 22,623 8,160 Total liabilities and equity $ 135,518 $ 91,730 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 $32,000 to the business in exchange for additional stock in the first quarter of 2018 and has received $4,200 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)
Cash flow statement (Indirect method) | |||
Amount $ | |||
From Operating Activities: | |||
Net income | 18663 | ||
add:Depre-off eq | 340 | ||
add:Depre-Comequ | 1250 | ||
less:increase in AR | -18399 | 23867-5468 | |
Less:increase in invent. | -604 | 604-0 | |
less:increase in supp. | -1465 | 2035-570 | |
add:decrease in Prep Ins | 575 | 1070-1645 | |
less:decrease inAP | -1180 | 1180-0 | |
Add:increa. In wages pay. | 305 | 895-590 | |
Less:decr. In Une. Comp. ser. Reve. | -1800 | 1800-0 | |
Net cash outflow of operating activities | -2315 | ||
From Investing Activities: | 0 | ||
From Financing Activities: | |||
Add:issue of shares | 32000 | ||
Less: dividend paid | -4200 | ||
Net cash inflow of Financing Activities | 27800 | ||
Net cash inflow of all activities | 25485 | ||
Add: Opening Cash | 57732 | ||
Closing Cash | 83217 |
Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her...
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 $ 24,407 Net sales 18,293 Total revenue 42,700 Cost of goods sold $ 14,952 Depreciation expense—Office equipment 350 Depreciation expense—Computer equipment 1,250 Wages expense 2,250 Insurance expense 505 Rent expense 2,375 Computer supplies expense 1,245 Advertising expense 550 Mileage expense 240 Repairs expense—Computer...
Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. $24,607 17,793 42,400 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2018 Computer services revenue Net sales Total revenue Cost of goods sold $14,652 Depreciation expense-Office equipment 350 Depreciation expense-Computer equipment 1,180 Wages expense 2,650 Insurance expense 535 Rent expense 1,775 Computer supplies expense 1,215 Advertising expense 500 Mileage expense 240 950 Repairs expense-Computer Total expenses...
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 $ 24,907 Net sales 18,593 Total revenue 43,500 Cost of goods sold $ 14,352 Depreciation expense—Office equipment 390 Depreciation expense—Computer equipment 1,190 Wages expense 2,650 Insurance expense 515 Rent expense 1,675 Computer supplies expense 1,285 Advertising expense 550 Mileage expense 240 Repairs expense—Computer...
Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data 20 posts $24,507 18,293 42,800 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2018 Computer services revenue Net sales Total revenue Cost of goods sold $14,552 Depreciation expense-office equipaent 360 Depreciation expense-Computer equipment 1,200 Wages expense 2.950 Insurance expense 485 Rent 2.075 Computer supplies expense 1,285 Advertising expense 570 Mileage expense 270 Repairs expense-Computer 900 Total...
Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data Income Statement $25,107 17,993 43,180 Computer services revenue Net sales Total revenue Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense $14,352 330 1,150 3,850 Rent expense Conputer supplies expense Advertising expense Mileage expense Repairs expense-Computer Total expenses Net income 2,875 1,285 520 270 920 24.487 $18,613 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2017,...
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, 2020 Computer services revenue $ 24,907 Net sales 18,293 Total revenue 43,200 Cost of goods sold $ 14,652 Depreciation expense—Office equipment 370 Depreciation expense—Computer equipment 1,160 Wages expense 3,150 Insurance expense 465 Rent expense 2,275 Computer supplies expense 1,245 Advertising expense 590 Mileage expense 300 Repairs expense—Computer...
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, 2028 $24,407 17,993 42,400 Computer services revenue Net sales Total revenue Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense $14,452 348 1,21e 2,95e 545 Rent expense Computer supplies expense Advertising expense Mileage expense Repairs expense-Computer Total expenses 2,375 1,285 540 240 958...
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, 2020 Computer services revenue $ 24,307 Net sales 18,593 Total revenue 42,900 Cost of goods sold $ 14,652 Depreciation expense—Office equipment 400 Depreciation expense—Computer equipment 1,240 Wages expense 3,150 Insurance expense 535 Rent expense 1,875 Computer supplies expense 1,255 Advertising expense 580 Mileage expense 300 Repairs expense—Computer...
Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data $ 24,907 18,693 43.600 $14,352 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue Net sales Total revenue 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 1,210 2.450 455 1,275 1,245...
Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. 60 points $ 24,807 18,293 43, 100 02:59:00 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue Net sales Total revenue Cost of goods sold $ 14, 252 Depreciation expense-Office equipment 320 Depreciation expense-Computer equipment 1,220 Wages expense 3,050 Insurance expense 535 Rent expense 1,475 Computer supplies expense Advertising expense Mileage expense Repairs...