Required information [The following information applies to the questions displayed below.) On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,050 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. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common Stock $ 7,950 17,500 4,200 46,010 19,060 9,430 85,050 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 3,070 17,500 4,530 8,090 880 690 Using the above information prepare an October statement of retained earnings for Ernst Consulting. ERNST CONSULTING Statement of Retained Earnings For Month Ended October 31 Retained earnings, Oct. 1 $ 0 Add: Net income 3,310 3,310 Less: Dividends 3,070 Retained earnings, Oct. 31 $ 240 Using the above information prepare an October 31 balance sheet for Ernst Consulting. ERNST CONSULTING Balance Sheet As of October 31 Assets Liabilities Cash Accounts payable Accounts receivable Office supplies Equity Land Common stock Office equipment Retained earnings 0 $ $ 0 $ 0 Also assume the following: a. The owner's initial investment consists of $39,040 cash and $46,010 in land in exchange for its common stock.. 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 $17,500 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.) LIVIVUT VUIVUULI Statement of Cash Flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash balance, October 1 Cash balance, October 31