Question

Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. $24,707 18,093 42,800 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue Net sales Total revenue Cost of goods sold $14,352 Depreciation expense-Office equipment 350 Depreciation expense-Computer equipment 1,160 Wages expense 3,050 Insurance expense 475 Rent expense 1,975 Computer supplies expense 1,255 Advertising expense 500 Mileage expense Repairs expense-Computer Total expenses Net income 24,347 $18, 453

Answer 1

BUSINESS SOLUTION statement of Cash Flow Indirect For Quarter ended March 31, 2020 - Amt ($) Cash Flow from Operating Activities $18.453 Net Income | Adjustments to reconcile Net Income to net Cosh provided Activities Depreciation Expenses. Computer Equip 1160 Pepreciation Exp - Office Equiptochta 350 increase in Account Receivable! - - 18,499 Increase in Inventory - - 694 Increase in Compute & Supplies - 1565 Decrease in prepaid expenses Increase in wages Payable 325 Decrease in Unearned Comp s Revenue -1500 585 -1200 $-2585 Decrease in Accounts Payable Net Cach provided - Activities Cash Flow from ! 19 Activities Net Cach used in Inves sting Activities Cash flow from financing Acti Cach Received from stock Issuance 33000 Cash paid for Dividends -3800 Nel cash used in Financing Activiting Net Increase in Cash $29., 200 Cash Balance at December 31, 2019 $ 26615 Cash Balance at March 31, 2020 $51922 $ 78537