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 $17,000 to purchase land and repaid $2,000 principal on an existing promissory note. In March, the company paid $2,200 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 $5,200 by signing a new promissory note in May and also issued stock to a new private investor for $12,200 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INC. Balance Sheet October 31 2015 2014 Assets Cash $ 8.690 12,600 14,400 2,200 3,200 29,000 2,000 2,100 Prepaid Rent Land Total Assets $54.190 $40,000 Liabilities and Stockholders Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earnings $ 2,100 3,200 1,200 5,400 2,200 9,200 5,290 14,200 1,200 20,200 Total Liabilities and Stockholders' Equity $54,190 $40,000 CONSULTEX, INC. Income Statement For the Year Ended October 31 2015 2014 Sales Revenue $159,000 $162,000 98,200 97,200 36,200 30,200 19,900 20,200 Salaries and Wages Expense Rent Expense Ublities Expenses 4,700 Income before Income Tax Expense Income Tax Expense 14,400 4,320 Net Income $ 3,290 10,080