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 $16,500 to purchase land and repaid $3,550 principal on an existing promissory note. In March 2020, the company paid $1,450 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 $7,850 by signing a new promissory note in May 2020 and also issued shares to a new private investor for $7,000 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 $14,360 $17,900 18,900 16,400 1,800 3,300 27,150 10,650 Total Assets $62,210 $48, 250 Liabilities and Shareholders' Equity Wages Payable Income Taxes Payable Notes Payable (long-term) Contributed Capital Retained Earnings $ 3,400 $ 5,650 3,850 3,850 19,100 14,800 13,000 7,000 22,860 16,950 Total Liabilities and Shareholders' Equity $62,210 $48, 250 CONSULTEX COMPANY Income Statement For the Year Ended October 31 2020 2019 Sales Revenue $149,000 $153,500 Wages Expense 92,380 92,100 Rent Expense 24,000 Other Operating Expenses 22,100 21,700 18,000 21,700 Income before Income Tax Expense Income Tax Expense 10,520 3,160 6,510 Net Income $ 7,360 $ 15,190 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.) CONSULTEX COMPANY Statement of Cash Flows For the Year Ended October 31, 2020 Cash flows from operating activities Net income Changes in current assets and current liabilities Accounts receivable Prepaid rent Wages payable 0 Cash provided by operating activities Cash flows from investing activities Purchased land 0 Cash used in investing activities Cash flows from financing activities Issued new promissory note Paid cash dividends Issued new promissory note Repaid promissory note principal Issued new company shares Repurchased company shares 0 Net change in cash Beginning cash position, October 31, 2016 Ending cash position, October 31, 2017 $ 0