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Cash Accounts receivable Office supplies Office equipment Land Accounts payable Common stock $ 7,950 Cash dividends 17,450 Consulting revenue 4, 2ee Rent expense 19, e60 Salaries expense 46,10 Telephone expense 9,430 Miscellaneous expenses 85,050 $ 3,70 17,450 4,530 8,290 880 690 Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 Also assume the following: a. The owner's Initial investment consists of $39,040 cash and $46,010 in land in exchange for its common stock. b. The company's $19,060 equipment purchase is paid in cash. c. Cash paid to employees is $2,860. The accounts payable balance of $9.430 consists of the $4,200 office supplies purchase and $5,230 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 $17,450 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 slgn.) ERNST CONSULTING Statement of Cash Flows For Month Ended December 31 Cash flows from operating activities Cash received from customers S 0 $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 Cash balance. December 1 Cash balance. December 31 $ 0

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