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![tep by step cash ow nework 6 Help Sa Required information Use the following information for exercise 15 to 18 LO P2 The following information applies to the questions displayed below] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,160 in asset business. On October 31, the companys records show the following items and amounts s 7,520 owner Cash withdrawals by Cash 3,190 4,310 Rent expense 46,800 Salaries expense 15,168 4,720 8,220 980 Office supplies Land Office equipment 19,190 Telephone expense Accounts payable Owner investments 85,16 9,600 Miscellaneous expenses71 < Prev 11 of 11 EE Next](https://media.cheggcdn.com/media%2F43d%2F43da75ee-0f43-4f70-9221-efa829634bf7%2Fimage)
Step by step cash ow nework 6 Help Sa Required information Use the following information for exercise 15 to 18 LO P2 The following information applies to the questions displayed below] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,160 in asset business. On October 31, the company’s records show the following items and amounts s 7,520 owner Cash withdrawals by Cash 3,190 4,310 Rent expense 46,800 Salaries expense 15,168 4,720 8,220 980 Office supplies Land Office equipment 19,190 Telephone expense Accounts payable Owner investments 85,16 9,600 Miscellaneous expenses71
Expert Answer
| Statement of cash flow | ||
| Cash flows from operating activities | ||
| Collection fron customers | 0 | |
| Cash paid to employees (8220-5290) | (2,930.00) | |
| Cash paid for rent | -4720 | |
| Cash paid for telephone expenses | -900 | |
| Cash paid for miscelleneous expenses | -710 | |
| (9,260.00) | ||
| Net cash from operating activities | (9,260.00) | |
| Cash flows from investing activities | ||
| Cash paid for office equipment | -19190 | -19190 |
| Net cash used investing activities | (19,190.00) | |
| Cash flows from financing activities | ||
| Borrowings from Bonds Payable | ||
| Investment by owner | 39160 | |
| Withdrawal by owner | -3190 | 35,970.00 |
| Net cash from financing activities | 35,970.00 | |
| Net Increase in cash and cash equivalents | 7,520.00 | |
| Cash Balance, October 1 | – | |
| Ending Balance | 7,520.00 | |
