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Required information [The following information applies to the questions displayed below.) On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed

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Required information [The following information applies to the questions displayed below.) On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $82,890 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 $ 15,140 Cash dividends $ 838 Accounts receivable 12,728 Consulting revenue 12,720 Office supplies 2,110 Rent expense 2,380 Office equipment 16,780 Salaries expense 5,629 Land 46,010 Telephone expense 780 Accounts payable 7,360 Miscellaneous expenses 600 Common stock 82,890 Also assume the following: a. The owner's initial investment consists of $36,880 cash and $46,010 in land in exchange for its common stock b. The company's $16,780 equipment purchase is paid in cash. C. Cash paid to employees is $370. The accounts payable balance of $7,360 consists of the $2,110 office supplies purchase and $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 $12,720 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.) ERNST CONSULTING Statement of Cash Flows For Month Ended December 31 Cash flows from operating activities Cash received from customers $ 0 Cash paid to employees Cash paid for telephone expenses Cash paid for rent Cash paid for miscellaneous expenses (370) (780) (2,380) (600) $ (4,130) Cash flows from investing activities Cash paid for office equipment (16,780) (16,780) Net cash used by investing activities Cash flows from financing activities Cash investments from shareholders 36,880 Cash dividends to shareholders (830) 36,050 Net cash provided by financing activities Net increase in cash Cash balance, December 1

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