bed 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 $14,000 to purchase land and repaid $3,000 principal on an existing promissory note. In March, the company paid $1,600 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 $4,600 by signing a new promissory note in May and also issued stock to a new private investor for $11,600 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INCORPORATED Balance Sheet Assets Cash Accounts Receivable Prepaid Rent Land: Total Assets October 31 2021 2020 $8,650 13,200 $ 11,400 11,600 1,800 2,600 26,000 $ 49,650 12,000 $37,600 $1,800 $2,600 1,200. 1,200 13,200 11,600 19,000 8,600 14,450 13,600 549,650 37,600 Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity CONSULTEX, INCORPORATED Income Statement For the Year Ended October 31 2021 2020 Sales Revenue $156,000 $ 159,000 Salaries and Wages Expense 97,600 96,600 Bent Expense Utilities Expenses Income Tax Expense Net Incone Required 35,600 29,600 19,300 19,600 Income before Income Tax Expense 3,500 1,050 13,200 3,960 $2,450 $9,240