On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On December 31, the company's records show the following items and amounts. Cash $ 11,360 Accounts receivable 14,000 Cash dividends Consulting revenue $ 2,000 14,000 Office supplies 3,250 Rent expense 3,550 Office equipment 18,000 Salaries expense 7,000 Land 46,000 Telephone expense Accounts payable 8,500 Miscellaneous expenses 760 580 Common stock 84,000 Exercise 1-21 (Static) Preparing a statement of cash flows LO P2 Also assume the following: a. The owner's initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock. b. The company's $18,000 equipment purchase is paid in cash. c. Cash paid to employees is $1,750. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase ar $5,250 in employee salaries yet to be paid. d. The company's rent expense, telephone expense, and miscellaneous expenses are paid in cash. e. No cash has yet been collected on the $14,000 consulting revenue earned. ERNST CONSULTING Statement of Cash Flows For Month Ended December 31 Cash flows from operating activities Cash received from customers 60 10 $ Cash flows from investing activities Cash flows from financing activities Cash balance. December 1 Cash balance, December 31 SA 0 0 0