Consultex, Inc. was founded in 2012 as a small financial consulting business. The company had done reasonably well in 2012-2014 but started noticing its cash dwindle early in 2015. In January 2015, Consultex had paid $15,500 to purchase land and repaid $3,000 principal on an existing promissory note. In March, the company paid $1,900 cash for dividends and $1,200 to repurchase Consultex stock that had previously been issued for $1,200. To improve its cash position, Consultex borrowed $4,900 by signing a new promissory note in May and also issued stock to a new private investor for $11,900 cash. Year-end comparative balance sheets and income statements are presented below CONSULTEX, INC Balance Sheet October 31 2015 2014 Assets Cash Accounts Receivable Prepaid Rent Land $ 8,170 12,000 11,900 2,900 12,000 13,800 1,950 27,500 Total Assets $51,420 $38,800 Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earnings $1,950 2,900 1,200 11,900 8,900 13,900 1,200 13,800 19,600 14,870 Total Liabilities and Stockholders' Equity $51,420 38,800 CONSULTEX, INC Income Statement For the Year Ended October 31 2015 2014 Sales Revenue Salaries and Wages Expense Rent Expense Utilities Expenses $157,500 $160,500 96,900 29,900 19,900 97,900 35,900 19,600 Income before Income Tax Expense ncome Tax Expense 4,100 1,230 13,800 4,140 Net Income $ 2.870 9.660