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Required information Use the following information for exercise 15 to 18 LO P2 [The following information applies to the questions displayed below) On October 1,

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Required information Use the following information for exercise 15 to 18 LO P2 [The following information applies to the questions displayed below) On October 1, Ebony Ernst organized Ernst Consulting, on October 3, the owner contributed $83,540 in assets 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 Owner Investments $12,650 13,520 2,850 45,940 17,53 8,110 83,540 Cash withdrawals by owner Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses 5 1,570 13,520 3,110 6,490 850 660 Exercise 1-18 Preparing a statement of cash flows LO P2 Also assume the following 6. The owner's initial investment consists of $37,600 cash and $45,940 in land b. The company's $17,530 equipment purchase is paid in cash. c. The accounts payable balance of 58,110 consists of the $2,850 office supplies purchase and $5,260 in employee salaries yet to be d. The company's rent, telephone, and miscellaneous expenses are paid in cash .. No cash has been collected on the $13,520 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.) paid ERNST CONSULTING 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 telephone expenses 0 ERNST CONSULTING 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 telephone expenses Cash paid for miscellaneous expenses Net cash used by operating activities Cash flows from investing activities $ 0 0 Cash flows from financing activities 0 Cash balance, October 1 Cash balance, October 31 GA 0

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