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
When he finishes entering his transactions, Malcolm realizes that his balance is incorrect. Assuming that Malcolm had no beginni
yulyashka [42]

Incomplete question. The full question read;

Malcolm has several receipts from recent transactions that he entered into his records. The receipts include an ATM receipt for an $80.00 deposit, a grocery store receipt for $25.50, and a paycheck deposit slip for $650.00.

When he finishes entering his transactions, Malcolm realizes that his balance is incorrect. Assuming that Malcolm had no beginning balance, what should his correct balance be?

Answer:

<u>$704.50</u>

Explanation:

First, we need to note which transactions are credit transactions, and which is a debit transaction. <em>Remember</em>, a<u> credit transaction</u> basically means a transaction that brings money into your account, while the latter is a transaction that takes money out of your account.

Malcolm's credit transactions:

  • ATM receipt for an $80.00 deposit
  • paycheck deposit slip for $650.00

Total: <u>$730.</u>

Malcolm's debit transactions:

  • grocery store receipt for $25.50

Total: $25.50

Substracting total debit transactions from credit transactions, Malcolm's correct balance would be = $704.50 ($730-$25.50).

8 0
3 years ago
Janet planned to purchase a McDonald's franchise. Meanwhile, Jason decided to open his own sandwich shop. Both decided to financ
Fantom [35]

Answer:

The correct answer is Banks view franchises as having fewer risks than other start-up businesses.

Explanation:

Franchising as an investment opportunity offers great advantages over other systems, this is an attractive alternative to develop a business; However, it will always be necessary to consider the pros and cons, before making a decision to franchise my business or not.

When I evaluate the possibility of franchising my business I have to be willing to assume a greater or lesser risk, that is, I am free to choose how much risk I am willing to accept in the development of my business model under the franchise scheme, and it is precisely this knowledge of the situation, which allows us to make the best decision about whether to expand my business (and under what conditions) or on the contrary wait for the business model to be at a more advanced stage of maturity before starting a project of franchise development.

4 0
3 years ago
Entrepreneurs work well under pressure because:
Darya [45]

Answer:

Letter d is correct. <u>They have a lot of energy.</u>

Explanation:

Entrepreneurs need to be high-energy people because they are naturally leaders in an organization and motivate employees.

The attitude that an entrepreneur adopts will usually be copied and transmitted in the organizational culture, but the ideal is that entrepreneurs prove to be high performance and energetic people, prepared to deal with the challenges and uncertainty that may occur in the organizational process, people who follow the line. the set of organizational ethics and policies.

The business posture is essential to cope with the daily pressures of running work systems.

5 0
2 years ago
How do you say 0.000354​
nikitadnepr [17]

Answer:

"Zero point zero zero zero three five four"

Explanation:

When you say the numbers after the decimal, you read each digit separately.

This is opposed to the number before the decimal, where you read the numbers together. (For example, 45.56 is forty-five point five six).

7 0
2 years ago
Read 2 more answers
Nosloc Corp. had $800,000 net income in 2019. On January 1, 2019 there were 200,000 shares of common stock outstanding. On April
tresset_1 [31]

Answer:

diluted EPS = $2.05

Explanation:

diluted earnings per share = net income / (weighted common stocks outstanding + diluted shares).

net income = $800,000

weighted common stocks outstanding:

January 1, 200,000 common stocks

April 1, 20,000 stocks issued = 20,000 x 9/12 = 15,000 common stocks

September 1, 30,000 treasury stocks purchased = -30,000 x 4/12 = -10,000

total weighted stocks outstanding = 205,000

diluted shares:

30,000 options at $40 per stock = [($50 - $40) / $50] x 30,000 = 6,000

2,000 bonds x 30 stocks = 60,000

preferred stock = 40,000 x 3 = 120,000

total diluted shares = 186,000

diluted EPS = $800,000 / (205,000 + 186,000) = $2.05

5 0
3 years ago
Other questions:
  • In intrapersonal communication, you use the language and symbols that were communicated to you through your culture.
    7·1 answer
  • The City of Sycamore has investments in bonds. These bonds have an amortized cost of $1,997,000. At year end, the financial pres
    14·1 answer
  • A company expected its annual overhead costs to be $1,500,000 and direct labor costs to be $1,000,000. Actual overhead was $1,45
    8·1 answer
  • Regulations could add to the cost of business because companies would have to spend money to meet regulatory guidelines.
    6·1 answer
  • Bennett Company’s high and low level of activity last year was 150,000 units produced in June and 50,000 units produced in Janua
    10·2 answers
  • The marketing team of Under Armour has come up with a strategy to advertise their shoes as a product that makes walking and runn
    11·1 answer
  • Bond ratings are significantly based on all of the following EXCEPT:_______.
    7·1 answer
  • Blackmon Brothers law firm used 165 legal pads over the last three weeks (15 days). It takes them three days to get more, and th
    8·1 answer
  • I LOVE WYBIE oml oml oml
    8·2 answers
  • Denmark is a good example of a nation-state because:.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!