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 $ 25,307 Net sales 18,693 Total revenue 44,000 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 Assets Cash Accounts receivable Inventory Computer supplies. Prepaid Insurance Prepaid rent $ 14,052 400 1,250 3,250 555 2,475 1,305 600 320 960 25,167 $ 18,833 BUSINESS SOLUTIONS Comparative Balance Sheets March 31, 2022 December 31, 2021 $ 68,057 22,867 $ 48,372 5,668 704 0 2,005 580 1,110 1,665 825 825 Total current assets Office equipment Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-Computer equipment Total assets Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Total current liabilities Equity Common stock Retained earnings Total liabilities and equity 95,568 8,000 (800) 20,000 (2,500) $ 120,268 $ 0 875 0 875 98,000 21,393 $ 120,268 57,110 8,000 (400) 20,000 (1,250) $ 83,460 $ 1,100 500 1,500 3,100 73,000 7,360 $ 83,460 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 $25,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,800 in cash dividends. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2022 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash balance at December 31, 2021 Cash balance at March 31, 2022 $ 0 0 $ 0 $ 0
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 $ 25,307 Net sales 18,693 Total revenue 44,000 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 Assets Cash Accounts receivable Inventory Computer supplies. Prepaid Insurance Prepaid rent $ 14,052 400 1,250 3,250 555 2,475 1,305 600 320 960 25,167 $ 18,833 BUSINESS SOLUTIONS Comparative Balance Sheets March 31, 2022 December 31, 2021 $ 68,057 22,867 $ 48,372 5,668 704 0 2,005 580 1,110 1,665 825 825 Total current assets Office equipment Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-Computer equipment Total assets Liabilities and Equity Accounts payable Wages payable Unearned computer service revenue Total current liabilities Equity Common stock Retained earnings Total liabilities and equity 95,568 8,000 (800) 20,000 (2,500) $ 120,268 $ 0 875 0 875 98,000 21,393 $ 120,268 57,110 8,000 (400) 20,000 (1,250) $ 83,460 $ 1,100 500 1,500 3,100 73,000 7,360 $ 83,460 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 $25,000 to the business in exchange for additional stock in the first quarter of 2022 and has received $4,800 in cash dividends. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2022 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash balance at December 31, 2021 Cash balance at March 31, 2022 $ 0 0 $ 0 $ 0
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter6: Statement Of Cash Flows
Section: Chapter Questions
Problem 23E
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