Use the information in Exercise to prepare an October 31 statement of cash flows for Ernst Consulting. Also assume the following:

a. The owner’s initial investment consists of $38,000 cash and $46,000 in land.

b. The company’s $18,000 equipment purchase is paid in cash.

c. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and $5,250 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 $14,000 consulting fees earned.

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Cash Accounts receivable Office supplies .. Land Office equipment Accounts payable.. Owner investments $11,360 4,000 3,250 46,000 18,000 8,500 84,000 Cash withdrawals by owner Consulting fees earned 2,000 .14,000 3,550 .7,000 760 580 -.--. Salaries expense Telephone expense.... Miscellaneous expenses