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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
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 $15,500 to purchase land and repaid $3,000 principal on an existing promissory note. In March, the company paid $1,900 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 $4,900 by signing a new promissory note in May and also issued stock to a new private investor for $11,900 cash. Year-end comparative balance sheets and income statements are presented below. 1. Prepare a properly formatted Statement of Cash Flows for Consultex, Incorporated, for the year ended October 31,202 indirect method). (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. CONSULTEX, INCORPORATED Statement of Cash Flows For the Yoar Ended October 31, 2021 Cash Flows from Operating Activities: Net Income Changes in Current Assets and Current Liablities Accounts Recelvable Prepaid Rent Salaries and Wages Payable Cash Provided by Operating Activitios Cash Flows from investing Activities: Purchased Land Cash Used in Investing Activities Cash Flows from Financing Activities: issued New Company Common Stock Issued New Promissory Note Repurchased Company Common Stock Paid Cash Dividends
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