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.