On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,050 in assets to launch the business. On October 31, the companys records show the following items and amounts. Cash $ 7,950 Cash withdrawals by owner $ 3,070 Accounts receivable 15,040 Consulting revenue 15,040 Office supplies 4,200 Rent expense 4,530 Land 46,010 Salaries expense 8,090 Office equipment 19,060 Telephone expense 880 Accounts payable 9,430 Miscellaneous expenses 690 Owner investments 85,050

Also assume the following:

1. The owners initial investment consists of $39,040 cash and $46,010 in land.
2. The companys $19,060 equipment purchase is paid in cash.
3. The accounts payable balance of $9,430 consists of the $4,200 office supplies purchase and $5,230 in employee salaries yet to be paid.
4. The companys rent, telephone, and miscellaneous expenses are paid in cash.
5. No cash has been collected on the $15,040 consulting fees earned.

Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)

Answer is not complete.

ERNST CONSULTING
Statement of Cash Flows
For Month Ended October 31
Cash flows from operating activities
Cash received from customersnot attempted	$0selected answer correct
Cash paid for rentselected answer correct	(4,530)selected answer correct
Cash paid for telephone expensesselected answer correct	(880)selected answer correct
Cash paid for miscellaneous expensesselected answer correct	(690)selected answer correct
not attempted	not attempted
not attempted		$(6,100)
Cash flows from investing activities
Cash paid to employeesselected answer incorrect	2,860selected answer incorrect
Net cash used by operating activitiesselected answer incorrect		2,860
Cash flows from financing activities
Cash paid for office equipmentselected answer incorrect	19,060selected answer incorrect
not attempted	not attempted
Net cash used by investing activitiesselected answer incorrect		19,060
Net increase in cashselected answer correct		7,950selected answer correct
Cash balance, October 1		0selected answer correct
Cash balance, October 31		$7,950

Cash paid to employee (which is incorrect) and everything to Net Cash used by investment activities is incorrect.

Any help is appreciated.

Exercise 1-18 Preparing a statement of cash flows LO P2 Also assume the following: a. The owner's initial investment consists of $39,040 cash and $46,010 in land. b. The company's $19,060 equipment purchase is paid in cash. c. The accounts payable balance of $9,430 consists of the $4,200 office supplies purchase and $5,230 in employee salaries yet to be paid. d. The company's rent, telephone, and miscellaneous expenses are paid in cash. e. No cash has been collected on the $15,040 consulting fees earned. Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)