hod ac15SinglePrint ie n&singleQuesti; No. 5&postSubmissio; Mewa1325270671274444

Question

hod ac15SinglePrint ie n&singleQuesti; No. 5&postSubmissio; Mewa13252706712744446 132627067096500318 ída132527075114884768r lest det ? The following information applies to the questions displayed below. On October 1 Ebony Emst organized Ermst Consulting on October 3 the owner contributed $84,200 in assets in exchange for its common stock to launch the business On October 31 the ollowing Rems and amounts compeny's records show the Cash Accounts Ofice supplies Land Office equipment Accounts payable Common Stock 10,10 Cash dvidends 14800 Consulting revenue 3450 Rent expense 46.030 Selaries expense 18,170 Telephone experse 2.180 4,800 3,750 600 84,200 ward: 2.85 points so assume the following: The owner's initial investment consists of $38.170 cash and S46.?? n land n exchange for l, common stock The accounts payable balance of $8.630 conssts of the $3,450 office supplies p . The company's rent, telephone, and miscellaneous expenses are paid in cash. . No cash has been collected on the $14,800 consulting fees earned. purchase and $5,180 in employee salaries yet to be paid sing the above information prepare an October 31 statement of cash flows for Emst Consulting (Cash outfows should be indicated by a minus sign,) Statement ef Cash Flows For Month Ended October 31 ash flows from operating activities received from customers ash paid to ,980 3,750 ash paid for telephone expenses 7,110

Explanation / Answer

Solution:

Statement of Cash Flows - Ernest Consulting
For the month ended October 31 Particulars Details Amount Cash Flow from Operating Activities: Cash received from customers ($14,800 - $14,800) $0.00 Cash paid to employees ($7,160 - $5,180) -$1,980.00 Cash paid for rent -$3,750.00 Cash paid for telephone expenses -$780.00 Cash paid for miscellenous expenses -$600.00 Net Cash used in Operating Activites (A) -$7,110.00 Cash Flow from Investing Activities (B): Cash paid for purchase of equipment -$18,170.00 Net Cash used in Investing Activites (B) -$18,170.00 Cash Flow from Financing Activities: Cash received from issue of common stock $38,170.00 Cash paid for dividends -$2,180.00 Net Cash Flow From Financing Activites (C) $35,990.00 Net increase in cash during the period (A + B + C) $10,710.00 Beginning cash balance $0.00 Ending cash balance $10,710.00

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