Consultex Company was founded in 2014 as a small financial consulting business. The company had done reasonably well in 20142016, but noticed that its cash was beginning to dwindle early in 2017. In January 2017, Consultex had paid $16,700 to purchase land and repaid $2,350 principal on an existing promissory note. In March 2017, the company paid $1,650 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 $7,800 by signing a new promissory note in May 2017 and also issued shares to a new private investor for $8,000 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	$	9,390		$	14,900
Accounts Receivable		15,350			12,650
Prepaid Rent		4,200			4,550
Land		31,050			14,350
Total Assets	$	59,990		$	46,450
Liabilities and Shareholders Equity
Wages Payable	$	650		$	3,400
Income Taxes Payable		3,350			3,350
Notes Payable (long-term)		20,200			14,750
Contributed Capital		15,000			8,000
Retained Earnings		20,790			16,950
Total Liabilities and Shareholders Equity	$	59,990		$	46,450

CONSULTEX COMPANY Income Statement For the Year Ended October 31
	2017			2016
Sales Revenue	$	153,000		$	158,100
Wages Expense		94,860			94,860
Rent Expense		27,000			21,000
Other Operating Expenses		23,300			24,200
Income before Income Tax Expense		7,840			18,040
Income Tax Expense		2,350			5,410
Net Income	$	5,490		$	12,630

CONSULTEX COMPANY Statement of Cash Flows For the Year Ended October 31, 2017 Cash flows from operating activities Changes in current assets and Curront liabilities Cash flows from investing activities Cash fows from financing activities Net change in cash Beginning cash position, October 31, 2016 Ending cash position, October 31, 2017