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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

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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, sed 2018 2017 CONSULTEX, INC. Balance Sheet October 31 Assets Cash Accounts Receivable Prepaid Rent Land Total Assets Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable long-tera) Connon Stock Retained Earnings Total Liabilities and Stockholders' Equity $ 9,570 $15,800 15,800 12.900 2,450 3,900 30,500 10.000 $58,320 $42.680 entes $ 2,450 $ 3,900 1,000 1,000 16,800 12,900 21,800 9,900 16,270 14,982 558,320 $42.600 CONSULTEX, INC. Income Statement For the Year Ended October 31 2018 2017 Sales Revenue $162,500 $165,500 Salaries and Wages Expense 98,989 97.900 Rent Expense 36,980 30,900 Utilities Expenses 20,600 20.900 Income before Income Tax Expense 6, 108 15,800 Income Tax Expense 4,740 Net Income $ 4,270 $ 11,060 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 0 Cash Flows from Investing Activities: 0 Cash Flows from Financing Activities: 0 $ 0

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