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 $19,000 to purchase land and repaid $2,000 principal on an existing promissory note. In March, the company paid $2,600 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 $5,600 by signing a new promissory note in May and also issued stock to a new private investor for $12,600 cash. Year-end comparative balance sheets and income statements are presented below.

CONSULTEX, INC.
Balance Sheet
October 31
	2018			2017
Assets
Cash	$	10,050		$	15,200
Accounts Receivable		15,200			12,600
Prepaid Rent		2,300			3,600
Land		29,000			10,000
Total Assets	$	56,550		$	41,400
Liabilities and Stockholders Equity
Salaries and Wages Payable	$	2,300		$	3,600
Income Taxes Payable		1,000			1,000
Notes Payable (long-term)		16,200			12,600
Common Stock		21,200			9,600
Retained Earnings		15,850			14,600
Total Liabilities and Stockholders Equity	$	56,550		$	41,400

CONSULTEX, INC.
Income Statement
For the Year Ended October 31
	2018			2017
Sales Revenue	$	161,000		$	164,000
Salaries and Wages Expense		98,600			97,600
Rent Expense		36,600			30,600
Utilities Expenses		20,300			20,600
Income before Income Tax Expense		5,500			15,200
Income Tax Expense		1,650			4,560
Net Income	$	3,850		$	10,640

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 FlowsFor the Year Ended October 31, 2018Cash Flows from Operating Activities:Net Income$3,850Changes in Current Assets and Current LiabilitiesAccounts Receivable(2,600)Prepaid Rent1,300Salaries and Wages Payable(1,300)Cash Used in Operating Activities1,250Cash Flows from Investing Activities:Purchased Land(19,000)(19,000)Cash Flows from Financing Activities:Repaid Promissory Note PrincipalIssued New Promissory Note0$0