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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

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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 $12,000 to purchase land and repaid $4,000 principal on an existing promissory note. In March, the company paid $1,200 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 $4.200 by signing a new promissory note in May and also issued stock to a new private investor for $11,200 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INCORPORATED Balance Sheet October 31 2021 2020 Assets Cash $ 10,290 $ 12,400 Accounts Receivable 12,400 11,200 Prepaid Rent 1,600 2,200 Land 22,000 10,000 Total Assets $ 46,290 $ 35,800 Liabilities and Stockholders' Equity Salaries and Wages Payable $ 1,600 $ 2,200 Income Taxes Payable 1,000 1,000 Notes Payable (tong-tern) 11,400 11,200 Common Stock 18,400 8,200 Retained Earnings 13,890 13,200 Total Liabilities and Stockholders' Equity 46,290 $ 35,800 CONSULTEX, INCORPORATED Income Statement For the Year Ended October 31 2021 2020 Sales Revenue $ 154,000 $ 157,000 Salaries and Wages Expense 97,200 96, 200 Rent Expense 35,200 29, 200 Utilities Expenses 18,900 19,200 Income before Income Tax Expense 2,700 12,400 Income Tax Expense 3,720 Net Income $1,890 $ 8,680 810 Required: 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: Net Income Changes in Current Assets and Current Liabilities $ 1.8901 1,890 Cash Flows from investing Activities 0 Cash Flows from Financing Activities 0 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 $ 1,890 1,890 Cash Flows from Investing Activities: 0 0 Cash Flows from Financing Activities: 0 $

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