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 $12,000 to purchase land and repaid $4,000 principal on an existing promissory note. In March, the company paid $1,200 cash for dividends and $1,000 to repurchase Consultex stock that had previously been issued for $1,000. To improve its cash position, Consultex borrowed $4,200 by signing a new promissory note in May and also issued stock to a new private investor for $11,200 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 $10,290 $ 12,400 11,200 2,200 10,000 12,400 1,600 22,000 Total Assets $46,290 S35,800 Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earnings S 1,600 2,200 1,000 11,200 8,200 13,890 13,200 1,000 11,400 18,400 Total Liabilities and Stockholders' Equity $46,290 $35,800 CONSULTEX, INC Income Statement For the Year Ended October 31 2015 2014 Sales Revenue Salaries and Wages Expense Rent Expense Utilities Expenses $154,000 $157,000 96,200 29,200 19,200 97,200 35,200 18,900 Income before Income Tax Expense Income Tax Expense 12,400 3,720 2,700 810 Net Income S 1,890 $8,680