! Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,540 in assets to launch the business. On December 31, the company's records show the following items and amounts. Cash Accounts receivable $ 12,650 Cash withdrawals by owner 13,520 Consulting revenue Salaries expense Office supplies 2,850 Rent expense Land 45,940 Office equipment 17,530 Accounts payable 8,110 Owner investments 83,540 Telephone expense Miscellaneous expenses $ 1,570 13,520 3,110 6,490 850 660 Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 Also assume the following: a. The owner's initial investment consists of $37,600 cash and $45,940 in land. b. The company's $17,530 equipment purchase is paid in cash. c. Cash paid to employees is $1,230. The accounts payable balance of $8,110 consists of the $2,850 office supplies purchase and $5,260 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 $13,520 consulting revenue earned. Using the above information prepare a December statement of cash flows for Ernst Consulting. Note: Cash outflows should be indicated by a minus sign. Na och han wat haan collected on the $12 520 consulting ravanin ! Required information Note: 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 Cash paid to employees Cash paid for telephone expenses Cash paid for miscellaneous expenses Net cash used 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 by owner Cash withdrawals by owner Net cash provided by financing activities Net increase in cash Cash balance, December 1 Cash balance, December 31 0 3,110 $ 3,110 0 0 $ 0