Consultex, Inc., was founded in 2015 as a small financial consulting business. The company had done reasonably well in 2015-2017 but started noticing its cash dwindle early in 2018. In January 2018, Consultex had paid $20,500 to purchase land and repaid $2,000 principal on an existing promissory note. In March, the company paid $2,900 cash for dividends and $1,000 to repurchase and eliminate Consultex stock that had previously been issued for $1,000. To improve its cash position, Consultex borrowed $5,900 by signing a new promissory note in May and also issued stock to a new private investor for $12,900 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INC. Balance Sheet October 31 2018 2017 $ 9,570 15,800 2,450 30,500 $58,320 $15,800 12,900 3,900 10,000 $42,600 Assets Cash Accounts Receivable Prepaid Rent Land Total Assets Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $ 2,450 1,000 16,800 21,800 16,270 $58,320 $ 3,900 1,000 12,900 9,900 14,900 $42,600 CONSULTEX, INC. Income Statement For the Year Ended October 31 2018 Sales Revenue $162,500 Salaries and Wages Expense 98,900 Rent Expense 36,900 Utilities Expenses 20,600 Income before Income Tax Expense 6,100 Income Tax Expense 1,830 Net Income $ 4,270 2017 $165,500 97,900 30,900 20,900 15,800 4,740 $ 11,060 Required: 1. Prepare a properly formatted Statement of Cash Flows for Consultex, Inc., for the year ended October 31, 2018 (using the indirect method). (Amounts to be deducted should be indicated with a minus sign.) 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