Reference no: EM132792272

Question - On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,920 in assets to launch the business. On October 31, the company's records show the following items and amounts.

Cash $8,450

Cash withdrawals by owner $2,930

Accounts receivable 14,910

Consulting revenue 14,910

Office supplies 4,080

Rent expense 4,420

Land 46,020

Salaries expense 7,900

Office equipment 18,860

Telephone expense 860

Accounts payable 9,280

Miscellaneous expenses 680

Owner investments 84,920

Also assume the following:

1. The owner's initial investment consists of $38,900 cash and $46,020 in land.

2. The company's $18,860 equipment purchase is paid in cash.

3. The accounts payable balance of $9,280 consists of the $4,080 office supplies purchase and $5,200 in employee salaries yet to be paid.

4. The company's rent, telephone, and miscellaneous expenses are paid in cash.

5. No cash has been collected on the $14,910 consulting fees earned.

Required - Using the above information how do you make an October 31 statement of cash flows for Ernst Consulting?