cash flows

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 $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 and eliminate 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, INCORPORATED Balance Sheet October 31 2021 2020 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 $ 11,000 14.000 2.000 26,000 $ 53,000 $ 14,000 12.000 3,000 0,000 5 39.000 1 $ 2,000 1.000 15,000 20,000 15,000 $ 53,000 $ 3,000 1.000 12,000 9,000 14,000 $39,000 CONSULTEX, INCORPORATED Income Statement For the Year Ended October 31 2021 Sales Revenue $ 158,000 Salaries and Wages Expense 98,000 rent Expense 36,000 Utilities Expenses 19,200 Income before Income Tax Expense 4.300 Income Tax Expense 1.100 Not Income 2000 2020 5 161,000 97.000 30,000 20.000 14,000 4.200 Required: 1. Prepare a properly formatted Statement of Cash Flows for Consultex, Incorporated, for the year ended October 31, 2021 (using the Indirect method). (Amounts to be deducted should be indicated with a minus sign.) CONSULTEX, INCORPORATED Statement of Cash Flows For the Year Ended October 31, 2021 Cash Flows from Operating Activities a properly formatted Statement of Cash Flows for Consultex, Incorporated, for the year ende indirect method). (Amounts to be deducted should be indicated with a minus sign.) CONSULTEX, INCORPORATED Statement of Cash Flows For the Year Ended October 31, 2021 Cash Flows from Operating Activities: Net Income Changes in Current Assets and Current Liabilities $ 3,000 Accounts Receivable Prepaid Rent Salaries and Wages Payable (2,000) 1,000 (1,000) s Cash Flows from Investing Activities: Purchased Land 1,000 (16,000) (16,000) Cash Used in Investing Activities Cash Flows from Financing Activities: Repaid Promissory Note Principal Issued New Promissory Note Repurchased Company Common Stock Issued New Company Common Stock Paid Cash Dividends (2,000) 5,000 (1.000) 12,000 (2.000) Cash Provided by Financing Activities Net Decrease in Cash Beginning Cash Position, October 31, 2020 Ending Cash Position, October 31, 2021 12.000 (3.000) 14,000 11.000 $