Consultex Company was founded in 2017 as a small financial consulting business. The company had done reasonably well in 2017- 2019, but noticed that its cash was beginning to dwindle early in 2020. In January 2020, Consultex had paid $20,000 to purchase land and repaid $4,500 principal on an existing promissory note. In March 2020, the company paid $2,850 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 $7,500 by signing a new promissory note in May 2020 and also issued shares to a new private investor for $14,000 cash. Comparative balance sheets and income statements for the most recent fiscal year are presented below. CONSULTEX COMPANY Balance Sheet October 31 2020 2019 Assets Cash Accounts Receivable Prepaid Rent Land $11,170 $14,500 16,350 12,550 2,400 3,600 33,250 13,250 Total Assets $63,170 $43,900 Liabilities and Shareholders' Equity Wages Payable Income Taxes Payable Notes Payable (long-term) Contributed Capital Retained Earnings $ 1,650 $ 7,150 1,250 1,250 19,400 16,400 27,000 14,000 13,870 5,100 Total Liabilities and Shareholders' Equity $63,170 $43,900 CONSULTEX COMPANY Income Statement For the Year Ended October 31 2020 2019 Sales Revenue $215,000 $223,400 Wages Expense 133,300 134,040 Rent Expense 45,000 39,000 Other Operating Expenses 20,100 28,300 Income before Income Tax Expense Income Tax Expense 16,600 4,980 22,060 6,620 Net Income $ 11,620 $ 15,440 Required: 1. Prepare a properly formatted statement of cash flows for Consultex for the year ended October 31, 2020 (using the indirect method). (Amounts to be deducted should be indicated by a minus sign.) Statement of Cash Flows For the Year Ended October 31, 2020 Cash flows from operating activities Changes in current assets and current liabilities Cash flows from investing activities Cash flows from financing activities Net change in cash Beginning cash position, October 31, 2016 Ending cash position, October 31, 2017