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 $19,700 to purchase land and repaid $3,650 principal on an existing promissory note. In March 2020, the company paid $1,100 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 $7,250 by signing a new promissory note in May 2020 and also issued shares to a new private investor for $5,500 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 $ 8,960 $16,150 18,750 16,550 2,200 5,750 32,550 12,850 Total Assets $62,460 $51,300 Liabilities and Shareholders' Equity Wages Payable Income Taxes Payable Notes Payable (long-term) Contributed Capital Retained Earnings $ 1,600 $ 3,100 5,400 5,400 18, 250 14,650 10,000 5,500 27,210 22,650 Total Liabilities and Shareholders' Equity $62,460 $51,300 CONSULTEX COMPANY Income Statement For the Year Ended October 31 2020 2019 Sales Revenue $146,000 $149,600 Wages Expense 90,520 89,760 Rent Expense 19,500 13,500 Other Operating Expenses 27,900 28,700 Income before Income Tax Expense Income Tax Expense 8,080 2,420 17,640 5,290 Net Income $ 5,660 $ 12,350 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.) Answer is not complete. CONSULTEX COMPANY Statement of Cash Flows $ 5,660 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 (2,200) () 3,550 (1,500) 5,510 Cash provided by operating activities Cash flows from investing activities Purchased land (19,700) (19,700) Cash used in investing activities Cash flows from financing activities Repaid promissory note principal Issued new company shares Issued new promissory note Paid cash dividends Repurchased company shares OOOOOOOO 0 Net change in cash Beginning cash position, October 31, 2016 Ending cash position, October 31, 2017 (7,190) 16,150 8,960 $