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 $16,000 to purchase land and repaid $2,000 principal on an existing promissory note. In March, the company paid $2,000 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 $5,000 by signing a new promissory note in May and also issued stock to a new private investor for $12,000 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INCORPORATED Balance Sheet October 31 Assets Accounts Receivable Prepaid Rent Land Cash 2021 2020 511,000 $14,000 14,000 2,000 26,000 12,000 3,000 10,000 $53,000 $ 39,000 $2,000 1,000 15,000 20,000 15,000 $53,000 1,000 12,000 9,000 14,000 $ 39,000 Assets Liabilities and Stockholders' Equity Salaries and Mages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity CONSULTEX, INCORPORATED Income Statement Tor the Tear Ended October 31 Sales Revenue Salaries and Wages Expense Bent Expense Utilities Expens Income before Income Tax Expense) Income Tax Expense Net Income 2021 2020 158,000 5 161,000 98,000 97,000 36,000 30,000 19,700 20,000 4,300 14,000 3,300 4,200 $3,000 $9,000 8: = " $ 14 #3 @2 2 W E S < Prev 3 of 7 Next > 9 3: g= . 0 % 55 ^ 16 & 7 8 9 20 R T Y U > a! O 0 P D F G H JK L X H C < V B N M Sales Revenue Salaries and Wages Expense ent Expense Utilities Expenses Incone before Income Tax Expense Income Tax Expense $150,000 $161,000 98,000 97,000 36,000 30,000 19.700 20,000 4,300 14,000 1,300 $3,000 4,200 $9,500 Net Incone Required: 1. Prepare a properly formatted Statement of Cash Flows for Consultex, Incorporated, for the year ended October 31, 2021 (using the indirect method). (Amounts to be deducted should be indicated with a minus sign.) CONSULTEX, INCORPORATED Statement of Cash Flows For the Year Ended October 31, 2021 Cash Flows from Operating Activities. Changes in Current Assets and Current Liabilities Cash Flows from Investing Activities Cash Flows from Financing Activities > @ 2 #2 80 #3 W LU E S $ 64 " ip D R % de 5 Z X C ce F LL 66 3 8 " Dil 61 .8 & 7 8 T Y U > " 01 O P G H J K L < B N M