(780) (390) Computer equipment 19,600 19,600 Accumulated depreciation—Computer equipment (2,320) (1,160) Total assets $ 135,178 $ 92,220 Liabilities and Equity Accounts payable $ 0 $ 1,160 Wages payable 925 500 Unearned computer service revenue 0 1,700 Total current liabilities 925 3,360 Equity Common stock 113,000 81,000 Retained earnings 21,253 7,860 Total liabilities and equity $ 135,178 $ 92,220 Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2022. Owner Santana Rey contributed $32,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,100 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)
(780) (390) Computer equipment 19,600 19,600 Accumulated depreciation—Computer equipment (2,320) (1,160) Total assets $ 135,178 $ 92,220 Liabilities and Equity Accounts payable $ 0 $ 1,160 Wages payable 925 500 Unearned computer service revenue 0 1,700 Total current liabilities 925 3,360 Equity Common stock 113,000 81,000 Retained earnings 21,253 7,860 Total liabilities and equity $ 135,178 $ 92,220 Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2022. Owner Santana Rey contributed $32,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,100 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter1: Introduction To Business Activities And Overview Of Financial Statements And The Reporting Process
Section: Chapter Questions
Problem 31E
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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, 2022
Computer services revenue $ 24,607
Net sales 17,993
Total revenue 42,600
Cost of goods sold $ 14,952
Depreciation expense—Office equipment 390
Depreciation expense—Computer equipment 1,160
Wages expense 2,950
Insurance expense 505
Rent expense 2,175
Computer supplies expense 1,255
Advertising expense 590
Mileage expense 250
Repairs expense—Computer 880
Total expenses 25,107
Net income $ 17,493
BUSINESS SOLUTIONS
Comparative Balance Sheets
March 31, 2022 December 31, 2021
Assets
Cash $ 83,087 $ 58,852
Accounts receivable 23,667 5,068
Inventory 694 0
Computer supplies 2,085 560
Prepaid insurance 1,080 1,625
Prepaid rent 765 765
Total current assets 111,378 66,870
Office equipment 7,300 7,300
Accumulated depreciation —Office equipment (780) (390)
Computer equipment 19,600 19,600
Accumulated depreciation—Computer equipment (2,320) (1,160)
Total assets $ 135,178 $ 92,220
Liabilities and Equity
Accounts payable $ 0 $ 1,160
Wages payable 925 500
Unearned computer service revenue 0 1,700
Total current liabilities 925 3,360
Equity
Common stock 113,000 81,000
Retained earnings 21,253 7,860
Total liabilities and equity $ 135,178 $ 92,220
Required:
Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2022. Owner Santana Rey contributed $32,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,100 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)
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