Also assume the following: The owner’s initial investment consists of $37,600 cash and $45,940 in land in exchange for its common stock. The company’s $17,530 equipment purchase is paid in cash. The accounts payable balance of $8,110 consists of the $2,850 office supplies purchase and $5,260 in employee salaries yet to be paid. The company’s rent, telephone, and miscellaneous expenses are paid in cash. No cash has been collected on the $13,520 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.)

See below

Explanation:

The above question is incomplete, however, the concluding part was extracted from similar question.

Ebony Ernst statement of cash flow October 31.

Cash flow from operating activities :

Payment towards expenses:

Payment of salary $1,750

Payment of rent $3,550

Payment of telephone expense $760

Payment of misc. expense $580

Total of cash flow from operating activities $6,640

($1,750 + $3,550 + $760 + $580)

Cash flow from investing activities:

Purchase of office equipment ($17,530)

Cash flow from financing activities:

Cash from common stock $37,600

Cash paid ($2,000)

Cash flow from financing activities $35,600 ($37,600 - $2,000)

Net cash flow during the year

($17,530 - $6,640) $10,890

Beginning balance 0

Year end cash balance $10,890

answer; /// the above statement is (true);

correct, but each time you dont pay the price of the penalty can increase.