Statement of Cash Flows: Understanding Cash Inflows and Outflows

xternal_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252F. hint #0 Cash $11,250 Ernst Consulting Accounts receivable 25,000 Statement of Cash Flows Office supplies 1,200 For Month Ended December 31 Land 28,000 Cash flows from operating activities: Office equipment 18,000 Cash received from customers $0 Accounts payable 5,000 Cash paid to employees (6,200) Common stock 71.500 Cash paid for rent (4,500) Dividends 2,000 Cash paid for telephone expenses (850) Consulting revenues 25,000 Rent expense 4,500 Cash paid for miscellaneous expenses (700) Salaries expense 10,000 Net cash used by operating activities ($12,250 Telephone expense 850 Cash flows from investing activities: Miscellaneous expenses 700 Cash paid for office equipment (18.000) Net cash used by investing activities (18,000) Cash flows from financing activities: Cash received - issuance of common stock 43,500 Dividends 2.000) Net cash provided by financing activities 41,500 Net increase in cash $11,250 Cash balance, December 1 0 Cash balance, December 31 Also assume the following: $11,250 a. The owner's initial investment consists of $43,500 cash and $28,000 in land. b. The company's $18,000 equipment purchase is paid in cash. . The accounts payable balance of $5,000 consists of the $1,200 office supplies purchase and $3,800 in employee salaries yet to be paid. 2:35 d. The company's rent, telephone and miscellaneous expens paid in cash. 4:14 1x