On October 1, Ebony Ernst organized Ernst Consulting: on October 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. $11,360 Cash dividends Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common Stock 2,000 14,000 3,550 7,000 766 588 14,668 Consulting revenue 3,250 Rent expense 46,eee Salaries expense 18,00 Telephone expense 8,500 Miscellaneous expenses 84,800 Exercise 1-18 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. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and $5,250 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 $14,000 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.) K Prev 12 of 14 Next >