30 Consultex, Incorporated, was founded in 2018 as a small financial consulting business. The company had done reasonably well from 2018 through 2020 but started noticing its cash dwindle early in 2021. In January 2021, Consultex had paid $15,500 to purchase land and repaid $3,000 principal on an existing promissory note. In March, the company paid $1,900 cash for dividends and $1,200 to repurchase and eliminate Consultex stock that had previously been issued for $1,200. To improve its cash position, Consultex borrowed $4,900 by signing a new promissory note in May and also issued stock to a new private investor for $11,900 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INCORPORATED Balance Sheet October 31 Assets Cash Accounts Receivable Prepaid Rent Land Total Assets Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Sales Revenue CONSULTEX, INCORPORATED Income Statement 2021 2020 $8,170 $ 12,000 13,800 1,950 27,500 11,900 2,900 12,000 $51,420 $ 38,800 $1,950 1,200 13,800 19,600 14,870 $ 2,900 1,200 11,900 8,900 13,900 $ 51,420 $38,800 For the Year Ended October 31 2021 $157,500 Salaries and Wages Expense Rent Expense Utilities Expenses Income before Income Tax Expense Income Tax Expense Net Incone 2020 $ 160,500 97,900 96,900 35,900 29,900 19,600 19,900 4,100 13,500 1,230 4,140 $2,870 $9,660 < Prev 5 of 7 Next >