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 $19,500 to purchase land and repaid $2,000 principal on an existing promissory note. In March, the company paid $2,700 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 $5,700 by signing a new promissory note in May and also issued stock to a new private investor for $12,700 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INC. Balance Sheet October 31 2017 2018 Assets Cash Accounts Receivable Prepaid Rent Land $8,890 $14,500 15,400 12,700 3,700 30,500 11,000 $57,140 $41,900 2,350 Total Assets Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earnings $ 2,350 3,700 1,100 16,400 12,700 21,300 9,700 15,990 14,700 $57,140 $41,900 1,100 Total Liabilities and Stockholders' Equity CONSULTEX, INC . Income Statement For the Year Ended October 31 2018 2017 $161,500 $164,500 97,700 30,700 20,700 15,400 4,620 $ 3,990 10,780 Sales Revenue Salaries and Wages Expense Rent Expense Utilities Expenses Income before Income Tax Expense Income Tax Expense Net Income 98,700 36,700 20,400 5, 700 1,710