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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
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 $21,000 to purchase land and repaid $2,000 principal on an existing promissory note. In March, the company paid $3,000 cash for dividends and $1,100 to repurchase Consultex stock that had previously been issued for $1,100. To improve its cash position, Consultex borrowed $6,000 by signing a new p note in May and also issued stock to a new private investor for $13,000 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INC Balance Sheet October 31 2015 2014 Assets Cash 8,410 15,100 Accounts Receivable 16.000 13.000 Prepaid Rent 2.500 4.000 Land 32,000 11,000 Total Assets $58,910 43,100 Liabilities and Stockholders' Equity Salaries and Wages Payable 2,500 4,000 ncome Taxes Payable 1.100 1.100 Notes Payable (long-term) 17.000 13.000 Common Stock 21,900 10,000 Retained Earnings 16.410 15.000 Total Liabilities and Stockholders' Equity $58,910 43,100 CONSULTEX, INC. Income Statement For the Year Ended October 31 2015 2014 Sales Revenue $163,000 166,000 Salaries and Wages Expense 99.000 98,000 ent Expense 37.000 31.000 Utilities Expenses 20,700 21.000 Income before Income Tax Expense 6,300 16.000 Income Tax Expense 1.890 4.800 Net Income 4,410 11,200 Required Prepare a properly formatted Statement of Cash Flows for Consultex Inc. for the year ended October 31 2015 (using the indirect method) (Amounts to be deducted should be indicated with a minus sign.)
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