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The following information applies to the questions displayed below] On October 1, Ebony Ernst organized Emst Consulting: on October 3, the owner contributed $84,000 in

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The following information applies to the questions displayed below] On October 1, Ebony Ernst organized Emst Consulting: on October 3, the owner contributed $84,000 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. s 2,000 14,000 3,550 7,000 $11,360 Cash dividends Cash Accounts receivable Office supplies Land office equipment Accounts payable Comnon Stock 14,000 Consulting revense ,250 Rent expense 46,000Salaries expense 18,000 Telephose expense 8,500 Miscellaneous expenses 4,000 580 Also assume the following a. The owner's initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock. b. The company's $18,000 equipment purchase is paid in cash. c. The accounts payable balance of $8.500 consists of the $3,250 office supplies purchase and $5,250 in employee salaries yet be pald. d. The company's rent, telephone, and miscellaneous expenses are paid in cash. e. No cash has been collected on the $14,000 consulting fees earned Using the above information prepare an October 31 statement of cash flows for Ermst Consulting. (Cash outflows should be indica by a minus sign.) 0 Answer is not complete. ERNST CONSULTING Statement of Cash Flows 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 miscelaneous expenses (1,750) (3,550) (760) (580) Net cash used by operating activities (6,640) Cash flows from Investing activites Cash paid for office equipment (18,000) Net cash used by investing activities Cash fnlows from Einancing activities Cash investments from shareholders38,000 Cash dividends to shareholders (2.000) (18.000) Net cash provided by financing Net increase in cash Cash balance, October 1 Cash balance, October 31 36,000 11,360 $11,360

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