E12-13 Preparing and Evaluating a Statement of Cash Flows (Indirect Method) from Comparative Balance Sheets and Income Statements [LO 12-1, LO 12-2, LO 12-3, LO 12-4, LO 12-5] Consultex, Inc. was founded in 2012 as a small financial consulting business. The company had done reasonably well in 2012-2014 but started noticing its cash dwindle carly in 2015. In January 2015, Consutex had paid $20,000 to purchase land and repaid $2,000 principal on an existing promissory note. In March, the company paid $2,600 cash for dividends and $1,200 to repurchase Consultex stock that had previously been issued for $1,200 To improve Its cash position, Consultex borrowed 55,800 by signing a nevw promissory note in May and also issued stock to a nevw private investor for $12,800 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INC. Balance Sheet October 31 2015 2014 Accounts Receivable Prepal Land $ 7,730 13,800 12,800 3,800 12,000 15,600 2,400 32,000 Total Assets $57,730 42,400 Llabilities and Stockholders Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Eamings 2,400 3,800 1.200 12,800 9,800 1,200 16,600 16,130 14,800 Total Liabilities and Stockholders Equity $57,73 42,400 CONSULTEX, INC Income Statement For the Year Ended October 31 2015 2014 Sales Revenue Salaries and Wages Expense Rent Expense Utilities Expenses $162,000 S165,000 97,800 30,800 20,800 98,800 36,800 20,500 Income before Income Tax Expense Income Tax Expense 5,900 1,770 15,600 4,680 Net Income $ 4,130 S 10,920