S 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 $83,110 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 $14,550 Cash dividends $ 1,120 Accounts receivable 12,940 Consulting revenue 12,940 Office supplies 2,400 Rent expense 2,640 Land 45,860 Salaries expense 5,920 Office equipment 17,020 Telephone expense Accounts payable 7,820 Miscellaneous expenses 800 620 Common stock 83,110 1 Exercise 1-18 Preparing a statement of cash flows LO P2 Also assume the following: a. The owner's initial investment consists of $37,250 cash and $45,860 in land in exchange for its common stock. b. The company's $17,020 equipment purchase is paid in cash. c. The accounts payable balance of $7,820 consists of the $2,400 office supplies purchase and $5,420 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 $12,940 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.) 0.5 points ERNST CONSULTING Statement of Cash Flows For Month Ended October 31 Cash flows from operating activities eBook Cash received from customers Cash paid for rent Cash paid for telephone expenses Hint Cash paid for miscellaneous expenses $ 0 (2,640) (800) (620) Print $ (4,060) Cash flows from investing activities Cash paid for office equipment (17,020) References (17,020) Cash flows from financing activities Cash dividends to shareholders (1,120) Accounts payable (1,120) Cash balance, October 1 14,550 Cash balance, October 31 $ 14,550