Preparing a statement of cash flows:

On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,010 in assets in exchange for its common stock to launch the business. On December 31, the companys records show the following items and amounts.

Cash	$ 14,890	Cash dividends	$ 930
Accounts receivable	12,820	Consulting revenue	12,820
Office supplies	2,290	Rent expense	2,530
Office equipment	16,900	Salaries expense	5,780
Land	45,960	Telephone expense	790
Accounts payable	7,670	Miscellaneous expenses	610
Common stock	83,010

Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2

Also assume the following:

The owners initial investment consists of $37,050 cash and $45,960 in land in exchange for its common stock.

The companys $16,900 equipment purchase is paid in cash.

Cash paid to employees is $400. The accounts payable balance of $7,670 consists of the $2,290 office supplies purchase and $5,380 in employee salaries yet to be paid.

The companys rent expense, telephone expense, and miscellaneous expenses are paid in cash.

No cash has yet been collected on the $12,820 consulting revenue earned.

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