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 $83,220 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. Retained earnings, October 1 as $0. Cash Accounts receivable office supplies Land office equipment Accounts payable Common stock $13,840 13,140 2,530 45,840 17,200 7,810 83,220 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses 7:38 $ 1,280 13,140 2,770 6,120 820 630 Also assume the following: a. The owner's initial investment consists of $37,380 cash and $45,840 in land in exchange for its common stock. b. The company's $17,200 equipment purchase is paid in cash. c. The accounts payable balance of $7,810 consists of the $2,530 office supplies purchase and $5,280 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 $13,140 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.) ERNST CONSULTING Statement of Cash Flows For Month Ended October 31 Cash flows from operating activities Cash received from customers S Cash paid to employees Cash paid for rent Cash paid for miscellaneous expenses 0 (2.770) (630) CO 6 9? A nts ERNST CONSULTING 3 03:07:24 0 (2,770) (630) (820) $ (4,220) Statement of Cash Flows For Month Ended October 31 Cash flows from operating activities Cash received from customers $ Cash paid to employees Cash paid for rent Cash paid for miscellaneous expenses Cash paid for telephone expenses Net cash provided by operating activities Cash flows from investing activities Cash paid for office equipment Net cash used by investing activities Cash flows from financing activities Cash investments from shareholders Cash dividends to shareholders Net cash used by financing activities Net decrease in cash Cash balance, October 1 Cash balance, October 31 (17,200) (17,200) 0 0