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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 $17,500 to purchase land and repaid $2,000 principal on an existing promissory note. In March, the company paid $2,300 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 $5,300 by signing a new promissory note in May and also issued stock to a new private investor for $12,300 cash Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INCORPORATED Balance Sheet October 31 2021 2020 Assets Cash $ 10,530 $ 14,600 Accounts Receivable 14,600 12,300 Prepaid Rent 2,150 3,300 Land 27,500 10,000 Total Assets $ 54,780 $ 40,200 Liabilities and Stockholders' Equity Salaries and Wages Payable $ 2,150 $ 3,30 Income Taxes Payable 1,000 1,000 Notes Payable (long-term) 15,600 12,300 Common Stock 20,600 9,300 Retained Earnings 15,430 14,300 Total Liabilities and Stockholders' Equity $ 54,780 $ 40,200 CONSULTEX, INCORPORATED Income Statement For the Year Ended October 31 2021 2020 Sales Revenue $ 159,500 $ 162,500 Salaries and Wages Expense 98,300 97,300 Rent Expense 36,300 30,300 Utilities Expenses 20,000 20,300 Income before Income Tax Expense 4,900 14,600 Income Tax Expense 1,470 4,380 Net Income $ 10,220 equired: 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 Accounts Receivable (2,300) Prepaid Rent 1,150 Salaries and Wages Payable (1,150) GA 3,430 1,130 Cash Flows from Investing Activities: Purchased Land 17,500 17,500 Cash Flows from Financing Activities: Repaid Promissory Note Principal Paid Cash Dividends Repurchased Company Common Stock Issued New Promissory Note Issued New Company Common Stock (1,000) (1,000) Net Decrease in Cash Beginning Cash Position, October 31, 2020 Ending Cash Position, October 31, 2021 0

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