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 $18,500 to purchase land and repaid $2,000 principal on an existing promissory note. In March, the company paid $2,500 cash for dividends and $1,200 to repurchase and eliminate Consultex stock that had previously been issued for $1,200. To improve its cash position, Consultex borrowed $5,500 by signing a new promissory note in May and also issued stock to a new private investor for $12,500 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 CONSULTEX, INCORPORATED Income Statement For the Year Ended October 31 2021 $ 8,210 15,000 2,250 30,500 $ 55,960 2020 $ 13,200 12,500 3,500 12,000 $ 41,200 $ 3,500 1,200 12,500 $ 2,250 1,200 16,000 20,800 15,710 9,500 14,500 $ 55,960 $ 41,200 Sales Revenue Salaries and Wages Expense Rent Expense Utilities Expenses Income before Income Tax Expense Income Tax Expense Net Income 2021 $ 160,500 2020 $ 163,500 98,500 97,500 36,500 30,500 20,200 20,500 5,300 15,000 1,590 4,500 $ 3,710 $ 10,500