9 Consultex, Inc., was founded in 2015 as a small financial consulting business. The company had done reasonably well in 2015-2017 but started noticing its cash dwindle early in 2018. In January 2018, Consultex had paid $12,500 to purchase land and repaid $4,000 principal on an existing promissory note. In March, the company paid $1,300 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 $4,300 by signing a new promissory note in May and also issued stock to a new private investor for $11,300 cash. Year-end comparative balance sheets and income statements are presented below. 02:04:16 CONSULTEX, INC. Balance Sheet October 31 2018 2017 $ 8,130 $10,800 12,600 11,300 1,650 2,300 24,500 12,000 $46,880 $36,400 Assets Cash Accounts Receivable Prepaid Rent Land Total Assets Liabilities and Stockholders' Equity Salaries and Wages Payable Income Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $ 1,650 $ 2,300 1,200 1,200 11,600 11,300 18,400 8,300 14,030 13,300 $46,880 $36,400 CONSULTEX, INC. Income Statement For the Year Ended October 31 Sales Revenue Salaries and Wages Expense Rent Expense Utilities Expenses Income before Income Tax Expense Income Tax Expense 2018 2017 $154,500 $157,500 97,300 96,300 35,300 29,300 19,000 19,300 2,900 12,600 870 3,780 $ 2 aaa 8820 Mat Tama Mc Graw Hill a O 83F Mostly cloudy O ) ( EN Income Tax Expense Net Income 870 $ 2,030 3,780 8,820 9 Required: 1. Prepare a properly formatted Statement of Cash Flows for Consultex, Inc., for the year ended October 31, 2018 (using the indirect method). (Amounts to be deducted should be indicated with a minus sign.) 02:04:13 CONSULTEX, INC. Statement of Cash Flows For the Year Ended October 31, 2018 Cash Flows from Operating Activities: Net Income Changes in Current Assets and Current Liabilities Accounts Receivable Salaries and Wages Payable Prepaid Rent 0 Cash Flows from Investing Activities: 0 Cash Flows from Financing Activities: Mc Graw Hill