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 $20,000 to purchase land and repaid $2,000 principal on an existing promissory note. In March, the company paid $2,800 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 $5,800 by signing a new promissory note in May and also issued stock to a new private investor for $12,800 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INC. Balance Sheet October 31 2018 2017 $ 7,730 15,600 2,400 32,000 $57,730 $13,800 12,800 ,800 12,000 542.400 Assets Cash Accounts Receivable Prepaid Rent Land Total Assets Liabilities and stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-ter) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $ 2,400$ 3,800 1.200 1.200 16,600 12,800 21,400 9,000 16.130 16.000 557/230 30/400 CONSULTEX, INC. Income Statement For the Year Ended October 31 2018 2017 Sales Revenue $162,000 $165.000 Salaries and wages Expense 98,800 97.000 Rent Expense 36,800 30.800 ULILities penses 20,500 20,000 Income betere Income Tax Expense 5,900 15,600 Income Tax Expense 1.770 4.680 Net Ince $ 13610,920 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 1 Cash Flows from Investing Activities: Cash Flows from Financing Activities