Consultex, Inc., was founded in 2012 as a small financial consulting business. The company had done reasonably well in 2012€“ 2014, but started noticing its cash dwindle early in 2015. In January 2015, Consultex had paid $ 16,000 to purchase land and repaid $ 2,000 principal on an existing promissory note. In March, the company paid $ 2,000 cash for dividends and $ 1,000 to repurchase and eliminate Consultex stock that had previously been issued for $ 1,000. To improve its cash position, Consultex borrowed $ 5,000 by signing a new promissory note in May and also issued stock to a new private investor for $ 12,000 cash. Year- end comparative balance sheets and income statements are presented below.

Requirements:
1. Prepare a properly formatted Statement of Cash Flows for Consultex, Inc., for the year ended October 31, 2015 (using the indirect method).
2. What one thing can Consultex reasonably change in 2016 to avoid depleting its cash?

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CONSULTEX, INC. Balance Sheet October 31 2015 2014 Assets Cash Accounts Receivable Prepaid Rent Land $11.000 14.000 2.000 26,000 $53,000 $14.000 12.000 3,000 10,000 $39,000 Total Assets Liabilities and Stockholders Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Eamings $ 2.000 1,000 15,000 20,000 $ 3,000 1,000 12.,000 9,000 14000 $39.000 Total Liabilities and Stockholders' Equity $53,000 CONSULTEX, INC. Income 5 For the Year Ended October 31 2015 2014 Sales Revenue Salaries and Wages Expense Rent Expense Utilitics Expenses Income before Income Tax Expense Income Tax Expense Net Income S158.000 98.000 36,000 19.700 4.300 1.300 S 3.000 $161,000 97.000 30,000 20,000 14.000 4.200 $ 9.800