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Return to question Required Informatilon (The following information applies to the questions displayed below On October 1, Ebony Emst organized Ernst Consulting: on October 3, the owner contributed $84,000 In assets In exchange for lts common stock 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 $11,368Cash dividends 5 2,086 14,080 3,558 7,800 768 580 14,8e0 Consulting revenue 3,250 Rent expense 46,00 Salaries expense 18,880 Telephone expense 8,580 Miscellaneous expenses 84,800 Also assume the following a The owners intial investment consists of $38.000 cash and $46.000 in land in exchange for its common stock b. The company's $18,000 equlpment purchase is pald In cash. c. The accounts payable balance of $8.500 consists of the $3,250 office supplies purchase and $5,250 In employee salarles yet to be pald. d. The company's rent, telephone, and miscellaneous expenses are pald 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 Ernst Consulting. (Cash utflows should be Indicated by a minus sign.) outhows should be Indicated by a manus sign3 Answer is not complete. Cash flows from operating activities Cash paid for rent Cash paid for telephone expenses Cash paid to employees Cash paid for miscelaneous 3,550 760 1,750 580 & S6,840 Cash flows from investing activities Cash paid for office equipment 18,000 18,000 Cash flows from financing activities Cash investments from shareholders 38,000 Cash dividends to shareholders 2.000 Net cash used by financing activities 40,000 Net increase in cash 84.640 Cash balance, October 1 Cash balance, October 31 S 64.840

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