Business, 22.02.2021 01:30 dexy8683

ACCOUNTING: 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, 2020

Computer services revenue $ 25,207

Net sales 18,693

Total revenue 43,900

Cost of goods sold $ 14,152

Depreciation expense—Office equipment 330

Depreciation expense—Computer equipment 1,220

Wages expense 3,050

Insurance expense 485

Rent expense 1,475

Computer supplies expense 1,285

Advertising expense 550

Mileage expense 270

Repairs expense—Computer 900

Total expenses 23,717

Net income $ 20,183

BUSINESS SOLUTIONS

Comparative Balance Sheets

December 31, 2019, and March 31, 2020

Mar. 31, 2020 Dec. 31, 2019

Assets

Cash $80,327 $61,482

Accounts receivable 23,767 4,868

Inventory 634 0

Computer supplies 2,035 510

Prepaid insurance 1,080 1,575

Prepaid rent 805 805

Total current assets 108,648 69,240

Office equipment 7,500 7,500

Accumulated depreciation—Office equipment (660) (330)

Computer equipment 19,400 19,400

Accumulated depreciation—Computer equipment (2,440) (1,220)

Total assets $132,448 $94,590

Liabilities and Equity

Accounts payable $0 $1,190

Wages payable 905 540

Unearned computer service revenue 0 2,500

Total current liabilities 905 4,230

Equity

Common stock 107,000 82,000

Retained earnings 24,543 8,360

Total liabilities and equity $132,448 $94,590

Required:

Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2020. Owner Santana Rey contributed $25,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,000 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)

Options for the 1st blank space: Net Income, Net Loss

Options for the rest of the blank spaces: Cash paid for dividends, cash received from stock issuance, decrease in accounts payable, increase/decrease in accounts receivable, increase/decrease in computer supplies, increase/decrease in inventory, increase/decrease in prepaid insurance, increase/decrease in unearned computer service revenue, increase/decrease in wages payable, depreciation expense--computer equipment, depreciation expense--office equipment.

PLEASE DO NOT ANSWER IF YOU DO NOT KNOW! Due by 11:59 PM EST.

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Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flow

Answers: 2

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ACCOUNTING: Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows...

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