Consultex, Incorporated, was founded in 2018 as a small financial consulting business. The company had done reasonably well from 2018 through 2020 but started noticing its cash dwindle early in 2021. In January 2021, Consultex had paid $14,500 to purchase land and repaid $3,000 principal on an existing promissory note. In March, the company paid $1,700 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 $4,700 by signing a new promissory note in May and also issued stock to a new private investor for $11,700 cash. Year-end comparative balance sheets and income statements are presented below. Assets. Cash CONSULTEX, INCORPORATED Balance Sheet October 31 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 CONSULTEX, INCORPORATED) Income Statement For the Year Ended October 31 Sales Revenue Salaries and Wages Expense Rent Expense Utilities Expenses Income before Income Tax Expense. Income Tax Expense. Net Income Required: 2021 2020 $9,490 $ 12,500 13,400 11,700 1,850 25,500 $50,240 $ 1,850 1,100 13,400 2,700 11,000 $ 37,900 $ 2,700 1,100 11,700 8,700 13,700 19,300 14,590 $50,240 $ 37,900 2021 2020 $ 156,500 $ 159,500 97,700 96,700 35,700 29,700 19,400 19,700 3,700 13,400 1,110 4,020 $2,590 $9,380 CONSULTEX, INCORPORATED Statement of Cash Flows For the Year Ended October 31, 2021 Cash Flows from Operating Activities: Net Income Changes in Current Assets and Current Liabilities $ 2,590 Accounts Receivable Prepaid Rent Salaries and Wages Payable (1,700) 850 (850) Cash Provided by Operating Activities 890 Cash Flows from Investing Activities: Purchased Land (14,500) (14,500) Cash Flows from Financing Activities: Repaid Promissory Note Principal (3,000) Paid Cash Dividends 4,700 Repurchased Company Common Stock 11,700 Issued New Promissory Note (1,100) (1,700) Cash Provided by Financing Activities Net Decrease in Cash Beginning Cash Position, October 31, 2020. Ending Cash Position, October 31, 2021 10,600 (3,010) 12,500 9,490