Consultex, Inc., was founded in 2015 as a small financial consulting business. The company had done reasonably well in 20152017 but started noticing its cash dwindle early in 2018. In January 2018, Consultex had paid $14,000 to purchase land and repaid $3,000 principal on an existing promissory note. In March, the company paid $1,600 cash for dividends and $1,200 to repurchase and eliminate Consultex stock that had previously been issued for $1,200. To improve its cash position, Consultex borrowed $4,600 by signing a new promissory note in May and also issued stock to a new private investor for $11,600 cash. Year-end comparative balance sheets and income statements are presented below.

Required:

1. Prepare a properly formatted Statement of Cash Flows for Consultex, Inc., for the year ended October 31, 2018 (using the indirect method).

CONSULTEX, INC. Balance Sheet October 31 2018 2017 Assets $ 8,650 $11,400 11,600 Cash Accounts Receivable 13,200 1,800 26,000 $49,650 $37,600 Prepaid Rent 2,600 Land 12,000 Total Assets Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) $ 1,800 $ 2,600 1,200 13,200 19,000 1,200 11,600 Common Stock 8,600 Retained Earnings 13,600 $49,650 $37,600 14,450 Total Liabilities and Stockholders' Equity CONSULTEX, INC. Income Statement For the Year Ended October 31 2018 2017 $156,000 97,600 35,600 19,300 3,500 1,050 $ Sales Revenue $159,000 96,600 29,600 19,600 Salaries and Wages Expense Rent Expense Utilities Expenses Income before Income Tax Expense 13,200 3,960 9,240 Income Tax Expense 2,450 $ Net Income CONSULTEX, INC. Statement of Cash Flows For the Year Ended October 31, 2018 Cash Flows from Operating Activities: Changes in Current Assets and Current Liabilities Cash Flows from Investing Activities: Cash Flows from Financing Activities