(Solved): Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her bus ...

Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. 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

to the business in exchange for additional stock in the first quarter of 2022 and has received

in cash dividends. Note: Amounts to be deducted should be indicated with a minus sign.February 26 The company paid cash to Lyn Addie for eight days' work at $120 per day. March 25 The company sold merchandise with a $2,800 cost for $2,900 on credit to Wildcat Services, invoice dated March 25. Required: Assume that Lyn Addie is an unmarried employee. Her $960 of wages have deductions for FICA Social Security taxes, FICA Medicare taxes, and federal income taxes. Her federal income taxes for this pay period total $96. Compute her net pay for the eight days' work paid on February 26. Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part 1. Record the journal entry to reflect the (employer) payroll tax expenses for the February 26 payroll payment. Assume Lyn Addie has not met earnings limits for FUTA and SUTA (the FUTA rate is 0.6% and the SUTA rate is 5.4% for the company). Record the entries for the merchandise sold on March 25 if a 4% sales tax rate applies.