Question

Please help me.

Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. $ 24,807 18,293 43,100 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 $14,652 350 1,160 2,450 515 1,775 1,265 560 300 910 23,937 $ 19,163 Dec. 31, 2019 $50,942 5,368 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 72,027 Accounts receivable 24,467 Inventory 604 Computer supplies 2,095 Prepaid insurance 1,060 Prepaid rent 795 Total current assets 101,048 Office equipment 7,500 Accumulated depreciation-office equipment (700) Computer equipment 19,300 Accumulated depreciation-Computer equipment (2,320) Total assets $124,828 Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Total current liabilities 905 Equity Common stock 101,000 Retained earnings 22,923 Total liabilities and equity $124,828 550 1,665 795 59,320 7,500 (350) 19,300 (1,160) $84,610 $ 1,110 540 1,900 3,550 73,000 8,060 $84,610
Thank you so much <3

Answer 1

Preparation of cash flow statements( Indirect method).

Refer to the below image for more detailed solution.

trement Rea preparation of cash flows statement : Business Solutions Statement of cash flows (Indivart) For Quarter ended March 31, 2020 Amount Amoont $19163 & 350 (19099) (604) (1545) STORAL $ 605 particulars cash flows from operating activities: Net income Adjustments to reconcile net income to not (ast provided by operating activities : Encome Statement items not affecting cast Deprecation expense office equipment Deprecation expense a computes ealespment changes in corrat assets & Corrent liabilities: Increase in accounts recivable L2446735 Trecease de Troventory [604 - o Encrease in Computer supplies Roa - Decrease in prepaid insurance [1665 1660] Decrease in accounts payable lino to] Inwease in wages payable raos-540] Decrease in uneamed computer Service revenue, [1900- Net cost used by operating activities cash flows from Investing Achrittes : Net cast used in investing activites cast flows from finanung activities : cast received from Stocks issuance cash paid for dividends Net cast provided by linanung activities Net increase in cast cash balance at December 31, 2019 cash balance et March 31, 2020 $("no) $365 +(1900) $(2615) $0 29000 & (4300) $23700 421005 150942 $72027