Consultex Company was founded in 2014 as a small financial consulting business. The company had done reasonably well in 2014- 2016, but noticed that its cash was beginning to dwindle early in 2017. In January 2017. Consultex had paid $18.250 to purchase land and repaid $4,200 principal on an existing promissory note. In March 2017, the company paid $1850 cash In dividends and $1,000 to repurchase Consultex shares that had previously been issued for $1,000. To Improve its cash position, Consultex borrowed $7.400 by signing a new promissory note in May 2017 and also issued shares to a new private investor for $9.000 cash. Comparative balance sheets and income statements for the most recent fiscal year are presented below. CONSULTEX COMPANY Balance Sheet October 31 2017 2016 Assets Cash Accounts Receivable Prepaid Rent Land $12,620 518,600 14,450 15,550 4,550 5,500 29, tee 10,850 Total Assets 354,728 350, 500 Liabilities and Shareholders' Equity Wages Payable Income Taxes Payable Notes Payable (long-term) Contributed Capital Retained Earnings $ 1, see $4,750 3,000 3,eee 17,150 13,950 17,500 9, See 25,570 19,300 Total Liabilities and Shareholders' Equity 564,720 550,5ee CONSULTEX COMPANY Income Statement For the Year Ended October 31 2012 2016 Sales Revenue $180,000 $185,700 Wages Expense 111,see 111,420 Rent Expense 30,000 24,000 Other Operating Expenses 26,800 24,00 Income before Income Tax Expense 11,600 26,20 Income Tax Expense 3,480 7,880 Net Income $ 8,120 18,400 Required: 1. Prepare a property formatted statement of cash flows for Consultex for the year ended October 31, 2017 (using the Indirect method) (Amounts to be deducted should be indicated by a minus sign.) CONSULTEX COMPANY Statement of Cash Flows For the Year Ended October 31, 2017 Cash flows from operating activities Changes in ourrent assets and current liabilities Other Operating Expenses 26,80 24,000 Income before Income Tax Expense Income Tax Expense 11,600 3,480 26,28 7,880 Net Income $ 8,120 $ 18,400 Required: 1. Prepare a properly formatted statement of cash flows for Consultex for the year ended October 31, 2017 (using the Indirect method). (Amounts to be deducted should be indicated by a minus sign.) CONSULTEX COMPANY Statement of Cash Flows For the Year Ended October 31, 2017 Cash flows from operating activities Changes in current assets and current liabilities 0 Cash flows from investing activities 0 Cash flows from financing activities Net change in cash Beginning cash position, October 31, 2016 Ending cash position, October 31, 2017 $ 0
