Cash flows from Financing Activities Assignment

Chapter 1 Get Home Saved Required information (The following information applies to the questions displayed below.) On October 1, Ebony Ernst organized Ernst Consulting: on October 3, the owner contributed $84.780 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. Cash Accounts receivable Office supplies Land office equipment Accounts payable Common Stock $ 8,990 16,500 3,930 45,980 18,660 9,170 84,780 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,830 16.500 4,300 7,740 850 670 Also assume the following:

a. The owner&#39;s initial investment consists of $38,800 cash and $45,980 in land in exchange for its common stock.. b. The company&#39;s $18,660 equipment purchase is paid in cash. c. The accounts payable balance of $9,170 consists of the $3,930 office supplies purchase and $5,240 in employee salaries yet to b pald. d. The company&#39;s rent, telephone, and miscellaneous expenses are paid in cash e. No cash has been collected on the $16,500 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 < Prev 8 of 9 Next > ERNST CONSULTING Statement of Cash Flows Cash flows from operating activities Cash paid for rent (Cash paid for telephone expenses Cash paid to employees Cash paid for miscellaneous expenses Net cash used by operating activities Cash flows from investing activities Cash paid for office equipment Net cash used by investing activities Cash flows from financing activities Cash investments from shareholders Cash dividends to shareholders Net cash provided by financing activities Net increase in cash Cash balance, October 1 Cash balance, October 31.

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