Chapter 12. Homework Saved 9 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 $17,000 to purchase land and repaid $2,000 principal on an existing promissory note. In March, the company paid $2,200 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 $5,200 by signing a new promissory note in May and also issued stock to a new private investor for $12,200 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 CONSULTEX, INCORPORATED Income Statement For the Year Ended October 31 2021 $ 8,690 14,400 2,100 29,000 $ 54,190 2020 $ 12,500 12,200 3,200 12,000 $ 40,000 $ 2,100 $ 3,200 1,200 1,200 15,400 12,200 20,200 9,200 15,290 14,200 $54,198 $ 40,000 Sales Revenue Salaries and Wages Expense Rent Expense Utilities Expenses Incone before Income Tax Expense Income Tax Expense 2021 $ 159,000 2020 $ 162,000 98,200 97,200 36,208 30,200 19,900 20,200 4,700 14,400 1,418 4,320 $3,290 $ 10,080 Net Income 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