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 $15,000 to purchase land and repaid $3,000 principal on an existing promissory note. In March, the company paid $1,800 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 $4,800 by signing a new promissory note in May and also issued stock to a new private investor for $11,800 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INCORPORATED Balance Sheet October 31 2021 2020 Assets Cash Accounts Receivable Prepaid Rent $ 10,330 13,600 1,900 25,000 $ 50,830 $ 13,600 11,800 2,800 10,000 5 38,200 Land Total Assets Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-ter) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $ 1,900 1.000 13,600 19,600 14.730 $ 50,830 $ 2.800 1.000 11,800 8,800 13,800 5 38,200 CONSULTEX, INCORPORATED Income Statement For the Year Ended October 31 Sales Revenue Salaries and Wages Expense Rent Expense Utilities Expenses Incone before Income Tax Expense Income Tax Expense Net Incon 2021 $ 157,000 97,800 35,800 19,500 3.900 1,170 52,730 2020 $ 160,000 96,800 29,800 19,800 13,600 4.000 $9,520 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 Accounts Receivable Prepaid Rent Salaries and Wages Payable $ 2,730 (1.800) 930 Cash Provided by Operating Activities Cash Flows from Investing Activities: Purchased Land 0 Cash Used in Investing Activities Cash Flows from Financing Activities $ 0