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 $18,000 to purchase land and repaid $2,000 principal on an existing promissory note. In March, the company paid $2,400 cash for dividends and $1,100 to repurchase and eliminate Consultex stock that had previously been issued for $1,100. To improve its cash position, Consultex borrowed $5,400 by signing a new promissory note in May and also issued stock to a new private investor for $12,400 cash. Year-end comparative balance sheets and income statements are presented below. Assets CONSULTEX, INC. Balance Sheet October 31 2018 2017 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 $ 9,370 $13,900 14,800 12,400 2,200 3,400 29,000 11,000 $55,370 $40,700 $ 2,200 $ 3,400 1,100 1,100 15,800 12,400 20,700 9,400 15,570 14,400 $55,370 $40,700