Question

$ 25,207 18,593 43,800 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 $14,852 370 1,150 3,050 465 2,275 1,235 560 300 880 25,137 $ 18,663 Dec. 31, 2019 $58,812 4,968 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 86,387 Accounts receivable 24,467 Inventory 684 Computer supplies 2,055 Prepaid insurance 1,060 Prepaid rent 795 Total current assets 115,448 Office equipment 7,300 Accumulated depreciation-office equipment (740) Computer equipment 19,900 Accumulated depreciation-Computer equipment (2,300) Total assets $139,608 Liabilities and Equity Accounts payable $ Wages payable 885 Unearned computer service revenue Total current liabilities 885 Equity Common stock 116,000 Retained earnings 22,723 Total liabilities and equity $139,608 520 1,625 795 66,720 7,300 (370) 19,900 (1,150) $92,400 $ 1,110 530 1,800 3,440 81,000 7,960 $92,400

Answer 1

Cash flow for 2020 for Business solutions is shown below
Business Solutions
Statement of cash flows
For Quarter ended March 31, 2020
Cash flows from operating activities
Net income	$18,663
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation expense	$1,520	(370+1150)
Increase in accounts receivable	-$19,499	(4968-24467)
Increase in inventory	-$684	(0-684)
Increase in computer supplies	-$1,535	(520-2055)
Decrease in prepaid insurance	$565	(1625-1060)
Decrease in accounts payable	-$1,110	(0-1110)
Increase in wages payable	$355	(885-530)
Decrease in unearned computer service revenue	-$1,800	(0-1800)
Net cash provided by operating activities	-$3,525
Cash flows from investing activities
Net cash used by investing activities	$0
Cash flows from financing activities
Cash contributed by owner	$35,000
Dividend paid	-$3,900
Net cash provided by financing activities	$31,100
Net increase in cash	$27,575
Cash balance, December 31, 2019	$58,812
Cash balance, March 31, 2020	$86,387