PLease find attached cash flow problem.

PLease find attached cash flow problem.

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Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her
business.
BUSINESS SOLUTIONS
Income Statement
For Three Months Ended March 31, 2012
Computer
services
revenue
$
25,107
Net sales
18,093
Total
revenue
43,200
Cost of
goods sold
$
14,952
Depreciati
on expense
—Office
equipment
360
Depreciati
on expense
—Computer
equipment
1,160
Wages
expense
3,250
Insurance
expense
525
Rent
expense
2,275
Computer
supplies
expense
1,245
Advertising
expense
560
Mileage
expense
310
Repairs
expense—
Computer
920
Total
expenses
25,557
Net
income
$
17,643
BUSINESS SOLUTIONS
Comparative Balance Sheets
December 31, 2011, and March 31, 2012
2012
2011
Assets

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Cash
$
78,657
$
52,442
Accounts
receivable
24,567
5,468
Merchan
dise
inventory
604
0
Compute
r supplies
2,065
500
Prepaid
insurance
1,020
1,635
Prepaid
rent
815
815
Office
equipment
7,900
7,900
Accumul
ated
depreciati
on—
Office
equipment
(720)
(360)
Compute
r
equipment
19,000
19,000
Accumul
ated
depreciati
on—
Computer
equipment
(2,320)
(1,160)
Total
assets
$
131,588
$
86,240
Liabilitie
s and
Equity
Accounts
payable
$
0
$
1,150
Wages
payable
885
530
Unearne
d
computer
service
revenue
0
1,800
Common
stock
110,000
75,000
Retained
earnings
20,703
7,760
Total
liabilities
and equity
$
131,588
$
86,240

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