Consultex, Inc., was founded in 2007 as a small financial consulting business. The company had done reasonably well in 2007-2009, but started noticing its cash dwindle early in 2010. In January 2010 , Consultex had paid \(\$ 16,000\) to purchase land and repaid \(\$ 2,000\) principal on an existing promissory note. In March 2010, the company paid \$2,000 cash for dividends and \$1,000 to repurchase 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 2010 and also issued stock to a new private investor for \(\$ 12,000\) cash. Comparative balance sheets and income statements for the most recent fiscal year are presented below.

Requirements:
1. Prepare a properly formatted Statement of Cash Flows for Consultex, Inc., for the year ended October 31, 2010 (using the indirect method).
2. What one thing can Consultex reasonably change in 2011 to avoid depleting its cash?

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CONSULTEX, INC. Balance Sheet October 31 2010 2009 Assets Cash $11,000 $14,000 Land Accounts Receivable Prepaid Rent Total Assets 14,000 12,000 2,000 3,000 26,000 $53,000 10,000 $39,000 Liabilities and Stockholders' Equity Wages Payable $ 2,000 $ 3,000 Income Taxes Payable 1,000 1,000 Notes Payable (long-term) 15,000 12,000 Contributed Capital 20,000 9,000 Retained Earnings 15,000 14,000 Total Liabilities and Stockholders' Equity $53,000 $39,000