Check my work 2 Santana Rey, owner of Business Solutions, decides to prepare a s
ID: 2397602 • Letter: C
Question
Check my work 2 Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. 13 points BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2018 $25,207 18,593 43,800 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 eBook Print References $14,752 300 1,250 2,850 505 2,275 1,265 580 230 860 24,867 $18,933 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2017, and March 31, 2018 Mar. 31, Dec. 31, 2018 2017 Assets Cash $ 73,487 $55,112Explanation / Answer
Net Cash flow for the year is the sum of cash flow from operating actiivties, Investing actiivties and financing actiivties.
BUSINES SOLUTIONS Statement of Cash flows (Indirect) For the Quarter ended March 31, 2018 Cash flow from operating Activities: Net Income $ 18,933 Adjustments to reconcile net income to net cash provided by operating activities: Depreciaton Expense-Office Equipment $ 300 Depreciaton Expense-Computer Equipment $ 1,250 Increase in Accounts Receivable $ -19,499 Increase in Inventory $ -604 Increase in compuer supplies $ -1,515 Decrease in prepaid Insurance $ 465 Decrease in accounts payable $ -1,200 Increase in wages payable $ 345 Decrease in unearned computer service revenue $ -1,800 Net Cash used by Operaring Activities $ -3,325 Cash flow from Investing Activities: Change in Equipment 0 Net Cash used by Invetsing Activities 0 Cash flow from financing Activities: Issuance of additional common stock $ 26,000 Cash dividend paid $ -4,300 Net Cash provided by Financing Activities $ 21,700 Net Cash flow for the Year $ 18,375 Cash at the beginning of Year $ 55,112 Cash at the end of the year $ 73,487 Note: Depreciation is non- cash item.So, it is added back to Net Income.