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[The following information applies to the questions displayed below.) On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in

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[The following information applies to the questions displayed below.) On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 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 Common stock $ 9,390 16,100 3,830 45,980 18,550 9,060 84,580 Cash dividends Consulting fees earned Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,650 16,100 4,190 7,570 830 650 Also assume the following: a. The owner's initial investment consists of $38,600 cash and $45,980 in land in exchange for its common stock b. The company's $18,550 equipment purchase is paid in cash. c. The accounts payable balance of $9,060 consists of the $3,830 office supplies purchase and $5,230 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 $16,100 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.) ERNST CONSULTING Statement of Cash Flows For Month Ended October 31 Cash flows from operating activities Cash paid for rent 4,190 Cash paid for telephone expenses 830 Consulting fees earned 50 40 Other expenses Purchase of office equipment Selling, general and administrative expenses 50 Utilities expense Ud HOW HOT CUVIUUD $ 8,010 18,550 0 ERNST CONSULTING Statement of Cash Flows For Month Ended October 31 Cash flows from operating activities 4,190 830 650 2,340 Cash paid for rent Cash paid for telephone expenses Cash paid for miscellaneous expenses Cash paid to employees Net cash provided by operating activities Cash flows from investing activities Purchase of office equipment Net cash provided by investing activities Cash flows from financing activities $ $ 8,010 18,550 18,550 0 Cash balance, October 1 Cash balance, October 31 $ 0 ERNST CONSULTING Statement of Cash Flows For Month Ended October 31 Cash flows from operating activities 4,190 Cash paid for rent Cash paid for telephone expenses Accounts payable 830 50 Accounts receivable 40 Cash dividends $ Cash investment from stockholders 50 Cash paid for miscellaneous expenses ca. HOWS ITOTT Ancing acuvues Cash balance, October 1 Cash balance, October 31 Statement of Cash Flows For Month Ended October 31 Cash flows from operating activities 4,190 830 50 Cash paid for rent Cash paid for telephone expenses Cash paid for rent Cash paid for telephone expenses Cash paid to employees Cash received from customers Consulting fees earned 40 $ 50 UaHOWS ITONTTI Tancing acuvius Cash balance, October 1 Cash balance, October 31 $ $16,100 consulting fees earned. Using the above information prepare an October 31 statement of cash flow. outflows should be indicated by a minus sign.) ERNST CONSULTING Statement of Cash Flows For Month Ended October 31 Cash flows from operating activities Cash paid for rent Cash paid for telephone expenses Consulting fees earned 4,190 830 50 Other expenses 40 $ $ 8,07 Purchase of office equipment Selling, general and administrative expenses 50 Utilities expense 18,550 ud. HOWS TOT TIIT CUVIUS 0 Cash balance, October 1 Cash balance, October 31 $ 0

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