10.00 points E12-13 Preparing and Evaluating a Statement of Cash Flows (Indirect Method) from Comparative Balance Sheets and Income Statements [LO 12-1, LO 12-2, LO 12-3, LO 12 4, LO 12-5] 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 $12,000 to purchase land and repaid $4,000 principal on an existing promissory note. In March, the company paid $1,200 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 $4,200 by signing a new promissory note in May and also issued stock to a new private investor for $11,200 cash. Year-end comparative balance sheets and income statements are presented below CONSULTEX, ING Balance Sheet October 31 2014 Assets Cash Accounts Receivable Prepaid Rent Land $10,290 S 12,400 11,200 2,200 10,000 12,400 1,600 22,000 Total Assets $46,290 35,800 Liabilities and Stockholders' Equity $ 1,600 1,000 11,400 18,400 13,890 2,200 1,000 11,200 8,200 13,200 Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $46,290 S 35,800 CONSULTEX, INGC Income Statement For the Year Ended October 31 2014 2015 Sales Revenue Salaries and Wages Expense Rent Expense Utilities Expenses $154,000 $157,000 96,200 29,200 19,200 97,200 35,200 18,900 Income before Income Tax Expense Income Tax Expense 2,700 12,400 3,720 810 S 1,890 8,680 Net Income Required Prepare a properly formatted Statement of Cash Flows for Consultex, Inc. for the year ended October 31, 2015 (using the indirect method). (Amounts to be deducted should be indicated with a minus sign.) CONSULTEX, INC Statement of Cash Flows For the Year Ended October 31, 2015 Cash Flows from Operating Activities et Income Changes in Current Assets and Current Liabilities Accounts Receivable Prepaid Rent Salaries and Wages Payable Cash Flows from Investing Activities urchased Land Cash Flows from Financing Activities epaid Promissory Note Principal aid Cash Dividends epurchased Company Common Stock ssued New Promissory Note ssued New Company Common Stock Cash Provided by Financing Activities et Decrease in Cash eginning Cash Position, October 31, 2014 Ending Cash Position, October 31, 2015