Exercise $1-21($Algo$)$ Preparing a statement of cash flows LO P$2$

Also assume the following:

a$.$ The owner's initial investment consists of $$38,800$ cash and $$45,980$ in land in exchange for its common stock.

b$.$ The company's $$18,660$ equipment purchase is paid in cash.

c$.$ Cash paid to employees is $$2,500.$ The accounts payable balance of $$9,170$ consists of the $$3,930$ office supplies purchase and

$$5,240$ in employee salaries yet to be paid.

d$.$ The company's rent expense, telephone expense, and miscellaneous expenses are paid in cash,

e$.$ No cash has yet been collected on the $$16,540$ consulting revenue earned.

Using the above information prepare a December statement of cash flows for Ernst Consulting.

Note: Cash outflows should be indicated by a minus sign.