16. value. 0.50 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 $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 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. CONSULTEX, INC. Balance Sheet October 31 2015 2014 Assets Cash S11,000 S 14,000 Accounts Receivable 14 000 12.000 Prepaid Rent 2,000 3,000 Land 26,000 10,000 Total Assets S53,000 S 39,000 Liabilities and Stockholders Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earmings Total Liabilities and Stockholders' Equity S 2,000 S 3,000 1,000 1,000 15,000 12,000 20,000 9,000 15,000 14,000 S53,000 S 39,000 CONSULTEX, INC. Income Statement For the Year Ended October 31 2015 Sales Revenue S158,000 Salaries and Wages Expense 98,000 Rent Expense 36,000 Utilities Expenses 19,700 Income before Income Tax Expense 4,300 Income Tax Expense 1,300 Net Income 5 3,000 2014 $ 161.000 97.000 30 000 20.000 14.000 4200 $ 9.800