Answer:
<u>Ernst Consulting</u>
<u>Statement of cash flows for the month end, October 31.</u>
Cash Flow From Operating Activities
Consulting Fees Earned $14,600
Less Expenses ($8,630)
Net Profit $5,970
Adjustment for :
Accounts payable ($3,450 + $5,180) $8,630
Accounts receivables ($14,600)
Net Cash Flow from Operating Activities $0
Cash Flow From Investing Activities
Purchase of Equipment ($18,170)
Net Cash Flow from Investing Activities ($18,170)
Cash Flow From Financing Activities
Common Stock Issue $38,170
Net Cash Flow from Financing Activities $38,170
Movement during the Month $20,000
Cash and Cash Equivalents at the Beginning $0
Cash and Cash Equivalents at the End $20,000
Explanation:
Statement of Cash flow only records items that involve movement in cash under the categories of : Cash from Operating Activities, Cash from Investing Activities and Cash from Financing Activities.
