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 $11,500 to purchase land and repaid $4,000 principal on an existing promissory note. In March, the company paid $1,100 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 $4,100 by signing a new promissory note in May and also issued stock to a new private investor for $11,100 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INCORPORATED Balance Sheet October 31 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 Sales Revenue CONSULTEX, INCORPORATED Income Statement For the Year Ended October 31 2021 $ 9,450 12,200 1,550 22,500 $ 45,700 $ 1,550 1,100 11,200 18,100 13,750 $ 45,700 2021 $ 153,500 2020 $ 11,300 11,100 2,100 11,000 $ 35,500 $ 2,100 1,100 11,100 8,100 13,100 $ 35,500 Salaries and Wages Expense Rent Expense Utilities Expenses Income before Income Tax Expense Income Tax Expense Net Income 2020 $ 156,500 97,100 96,100 35,100 29,100 18,800 19,100 2,500 12,200 750 3,660 $ 1,750 $ 8,540 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: Modern Movables Incorporated is a Washington-based clothing and ski/skate accessories retailer. In a recent quarter, it reported the following activities: Net income Purchase of equipment Borrowings under line of credit (bank) Cash received from customers Proceeds from issuance of common stock Payments to reduce notes payable (long-term) Proceeds from sale of marketable securities Purchase of marketable securities Income taxes paid $ 1,855 9,146 29,312 511 421,328 24,318 41,285 35,131 7,447 3,581 Other fixed assets purchased with promissory notes Required: Based on this information, present the cash flows from investing and financing activities sections of the cash flow statement. (Amounts to be deducted should be indicated with a minus sign.) MODERN MOVABLES INCORPORATED Statement of Cash Flows (Partial) Cash Flows from Investing Activities: Borrowings Under Line of Credit Cash Received from Customers Interest Paid Payments on Notes Payable (long-term)