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 $16,050 to purchase land and repaid $4,850 principal on an existing promissory note. In March 2017, the company paid $1,750 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 $7,550 by signing a new promissory note in May 2017 and also issued shares to a new private investor for $8,500 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 $14,210 $17,150 16,900 14,100 2,250 4,800 26,400 10,350 Total Assets $59,760 $46,400 Liabilities and Shareholders' Equity Wages Payable Income Taxes Payable Notes Payable (long-term) Contributed Capital Retained Earnings $ 2,150 $ 5,150 5,300 5,300 15,100 12,400 16,000 8,500 21,210 15,050 Total Liabilities and Shareholders' Equity $59,760 $46,400 CONSULTEX COMPANY Income Statement For the Year Ended October 31 2017 2016 Sales Revenue $170,000 $175,400 Wages Expense 105,400 105, 240 Rent Expense 28,500 22,500 Other Operating Expenses 24,800 23,800 Income before Income Tax Expense Income Tax Expense 11,300 3,390 23,860 7,160 Net Income $ 7,910 $ 16,700 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 Net income $ 7,910 Changes in current assets and current liabilities Accounts receivable (1,750) Prepaid rent Wages payable 6,160 Cash provided by operating activities Cash flows from investing activities Purchased land 0 Cash used in investing activities Cash flows from financing activities Repaid promissory note principal Issued new promissory note Issued new company shares Paid cash dividends 0 Cash provided by financing activities Net change in cash Beginning cash position, October 31, 2016 Ending cash position, October 31, 2017 $ 0