Required information Use the following information for exercise 18 to 21 LO P2 (Algo) [The following information applies to the questions displayed below) On December 1, Jasmin Ernst organized Ernst Consulting; on December 3, the owner contributed $83,390 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 Accounts receivable Office supplies Land Office equipment Accounts payable Common stock $13,210 13,320 2,720 45,910 17,350 7,970 83,390 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 1,460 13,320 2,950 6,290 830 640 Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 Also assume the following: a. The owner's initial investment consists of $37,480 cash and $45,910 in land in exchange for its common stock. b. The company's $17,350 equipment purchase is paid in cash. c. The accounts payable balance of $7,970 consists of the $2,720 office supplies purchase and $5,250 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 $13,320 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 $ Cash paid for rent 0 (2.950) ERNST CONSULTING Statement of Cash Flows For Month Ended December 31 Cash flows from operating activities Cash received from customers $ 0 Cash paid for rent (2,950) Cash paid to employees (1,040) Cash paid for telephone expenses (830) Cash paid for miscellaneous expenses (640) Net cash used by operating activities Cash flows from investing activities Cash paid for office equipment (17,350) Net cash used by investing activities Cash flows from financing activities Cash dividends to shareholders (1,460) $ (5,460) (17,350) Inet cash provided by financina activities (1.460)