On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $83,220 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts.

Cash $13,840
Accounts receivable 12,000
Office supplies 2530
Land 45,840
Office equipment 17,200
Accounts payable 7810
Common Stock 83,220

Cash dividends $1280
Consulting revenue 12,000
Rent expense 2770
Salaries expense 6120
Telephone expense 820
Miscellaneous expenses 630

Required:
Prepare an October income statement for the business.

a. The ownerâs initial investment consists of $37,380 cash and $45,840 in land in exchange for its common stock.
b. The companyâs $17,200 equipment purchase is paid in cash.
c. The accounts payable balance of $7,810 consists of the $2,530 office supplies purchase and $5,280 in employee salaries yet to be paid.
d. The companyâs rent, telephone, and miscellaneous expenses are paid in cash.
e. No cash has been collected on the $12,000 consulting fees earned.

Required:
Prepare a statement of cash flows for Ernst Consulting.