1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lilavasa [31]
3 years ago
8

On October 1. Ebony Ernst organized Ernst Consulting, on October 3. the owner contributed $84,310 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 10,200
Accounts receivable 15,200
Office supplies 3550
Land 45990
Office equipment 18310
Accounts payable 8,740
Stock 84,310
Cash dividends 2340
Consulting revenue 15,200
Rent expense 3,910
Salaries expense 7,350
Telephone expense 790
Miscellaneous expenses 610

Also assume the following
a. The owners initial investment consists of $38320 cash and $45,990 in land in exchange for Its common stock
b. The company's S18.310 equipment purchase is paid in cash
c- The accounts payable balance of S8,740 consists of the S3.550 office supplies purchase and $5,190 in employee salaries yet to be paid
d. The company's rent. telephone. and miscellaneous expenses are paid in cash.
e. No cash has been collected on the $15.200 consulting fees earned

Required:
Using the above information prepare an October 31 statement of cash flows for Ernst Consulting (Cash outflows should be indicated by a minus sign.)
Business
1 answer:
LuckyWell [14K]3 years ago
3 0

Answer and Explanation:

The Preparation of the statement of cash flows is shown below:-

                                      <u>Ernst Consulting</u>

                                    <u>Statement of cash flows</u>

                                <u>For the year ended Oct 31</u>

<u>Particulars                                                     Amount</u>

Cash flow from operating activities

Cash paid for salaries                  -$2,160

($7,350 - $5,190)

Cash paid for rent                        -$3,910  

Paid cash for telephone

expense                                         -$790  

Paid cash for miscellaneous

expense                                        -$610  

Net cash flow from operating activities          -$7,470

Cash flow from investing activities

Purchase of equipment              -$18,310

Net cash flow from investing activities             -$18,310

Cash flow from financing activities

dividend paid                                 -$2340

Initial investment in Cash              $38,320  

Net cash flow from financing activities             $35,980

Net cash increase/decrease                                $10,200

Beginning Cash                                                      0

Ending Cash                                                           $10,200

Therefore we indicate the minus sign for cash outflow while the positive amount shows cash inflow.

You might be interested in
The sensitivity of bank profits to changes in interest rates can be measured more directly using ▼ duration analysis credit rati
Pavel [41]

Answer:

The correct answer is Gap Analysis.

Explanation:

The deficiency analysis is a strategic planning tool that will help you understand where you are, where you want to go and how to get there.

One of the first steps for the transition or implementation of your management system is to check your management system with respect to the requirements of the standard. This is what is commonly known as deficiency analysis, also known as pre-audit.

The deficiency analysis is carried out at the beginning of the certification process to verify compliance with the requirements of the standards to be implemented. Each standard has specific requirements that must be met and are detailed in several clauses. If your system does not meet these requirements, you must solve this problem in order to get certified.

8 0
2 years ago
Read 2 more answers
In your own words what is demand
Step2247 [10]

Answer:

telling somone to a specifc thing. it can be good or bad

Explanation:

7 0
2 years ago
What are the requirements for something to be used as money?
Anastasy [175]
For it to have international value
7 0
2 years ago
A licensed real estate broker who shall by choice elect to work under the name and supervision of another individual broker or a
Minchanka [31]

Answer:

Associate Real Estate Broker

Explanation:

7 0
2 years ago
Roberta Whitman has recently been hired by Jackson Pharmaceuticals as the senior vice president of human resources. Jackson Phar
Nata [24]

Answer:

Employees frequently complain about the inconsistent assistance they receive from the HR department due to its large size.

Explanation:

Having a specialized, embedded HR unit is beneficial to each, specific unit, as  HR would cater to every department and its special needs. On the contrary, centralized HR tends to give inconsistent help, as they always assign a different person or team when a problem arises.

So, if the employees complained that they cannot receive adequate help from the centralized HR, it would be wise to do what Roberta suggested.

8 0
2 years ago
Other questions:
  • Who owns the alcoholic beverages of a private club answer?
    8·2 answers
  • Katherine gives piano lessons for $15 per hour. She also grows flowers, which she arranges and sells at the local farmer's marke
    13·1 answer
  • 1. Why do you think savings, scholarships, and state aid are good “preparation"
    5·1 answer
  • Identify the statement below that is incorrect. The normal balance of accounts receivable is a debit. The normal balance of divi
    15·1 answer
  • A job cost sheet is a form prepared for each separate job that records the materials, labour, and overhead costs charged to the
    11·1 answer
  • Unland Company uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows:
    15·1 answer
  • Olu’s African Sculptures is preparing their budgeted financial statements for the coming year, and has accumulated the following
    14·1 answer
  • Ivanhoe Corporation has fixed costs of $412,800. It has a unit selling price of $4, unit variable cost of $2.40, and a target ne
    8·1 answer
  • Anyone wan na talk?????
    6·1 answer
  • In the BCG Matrix, cash cows are: _____________
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!