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 $16,500 to purchase land and repaid $2.000 principal on an existing promissory note. In March, the company paid $2,100 cash for dividends and $1100 to repurchase and eliminate Consultex stock that had previously sued for $1,100. To Improve its cash position, Consultex borrowed $5,100 by signing a new promissory note in May and also issue stock to a new private investor for $12,100 cash. Year-end comparative balance sheets and Income statements are presented below CONSULTEX, INC. Balance Sheet October 31 2018 2017 $ 9,850 $13,300 14,200 12,180 2,050 3,109 27,500 11, ege $53,600 539,500 Assets 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 $ 2,950 $ 3.100 1.100 1,100 15,200 12,180 20.100 9,100 15,150 14,100 $53,680 539,500 CONSULTEX, INC. Income Statement For the Year Ended October 31 2018 2017 Sales Revenue $158,500 $ 161,500 Salaries and Wages Expense 98,100 97,100 Rent Expense 36,100 30,100 Utilities Expenses 19,800 20, 100 Income before Income Tax Expense 4,500 14,200 Income Tax Expense 1,35e 4,260 Net Income $ 3,150 $ 9,948 CONSULTEX, INC. Statement of Cash Flows For the Year Ended October 31, 2018 Cash Flows from Operating Activities Net Income Changes in Current Assets and Current Liabilities Accounts Receivable 2.100 Prepaid Rent (1,050) Salaries and Wages Payable 0 S 3 150 4.200 Cash Provided by Operating Activities Cash Flows from Investing Activities Purchased Land (16.500 (10,500) Cash Provided by investing Activities Cash Flows from Financing Activities issued New Company Common Stock