Question

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, and March 31, 2018 Mar. 31Dec 31, 2018 2017 Assets Cash Accounts receivable Inventory Computer supplies Prepaid insurance Prepaid rent Total current assets 73,787$52,92 5,068 24,167 634 2,045 1,e60 795 510 1,615 795 02,488 60,8

Answer 1

BUSINESS SOLUTIONS
Statement of Cash Flows
For the Three Months Ended March 31, 2018
Cash Flows from Operating Activities
Net income		18613
Adjustments to reconcile net income to net cash provided by operations:
Depreciation expense-office equipment	330
Depreciation expense-computer equipment	1150
Increase in Accounts Receivable	-19099
Increase in Inventory	-634
Increase in Computer supplies	-1535
Decrease in Prepaid insurance	555
Decrease in Accounts payable	-1200
Increase in Wages payable	415
Decrease in Unearned computer service revenue	-1700	-21718
Net cash used by operating activities		-3105
Cash Flows from Investing Activities		0
Cash Flows from Financing Activities
Issuance of Common stock	29000
Payment of cash dividends	-4200
Net cash provided by financing activities		24800
Net increase (decrease) in cash		21695
Cash balance, December 31, 2017		52092
Cash balance, March 31, 2018		73787