nment 6 (Ch 12 & 13) Saved Help 5 Consultex Company was founded in 2017 as a small financial consulting business. The company had done reasonably well in 2017- 2019, but noticed that its cash was beginning to dwindle early in 2020. In January 2020. Consultex had paid $19,100 to purchase land and repaid $3,150 principal on an existing promissory note. In March 2020, the company paid $2,650 cash in dividends and 51,000 to repurchase Consultex shares that had previously been issued for $1000. To Improve its cash position, Consultex borrowed 56,900 by signing a new promissory note in May 2020 and also issued shares to a new private investor for $13,000 cash. Comparative balance sheets and income statements for the most recent fiscal year are presented below. CONSULTEX COMPANY Balance Sheet October 31 2020 2019 Assets Cash $13,660 $17.500 Accounts Receivable 19,000 15,400 Prepaid Rent 3,303 5,800 Land 32,200 13,100 Total Assets $68, 160 551,800 oped Liabilities and Shareholders' Equity Wages Payable Income Taxes Payable Notes Payable (long-term) Contributed Capital Retained Earnings Total Liabilities and Shareholders' Equity $ 1,150 $ 6,150 5,050 5,050 16.700 12.950 25,000 13,000 20,260 14,650 $68,160 $51,800 CONSULTEX COMPANY Income Statement For the Year Ended October 31 2020 2019 Sales Revenue $230,000 $237,800 Wages Expense 142,600 142, 688 Rent Expense 42,000 36,000 Other Operating Expenses 33,600 29, 300 Income before Income Tax Expense 11,800 29,820 Income Tax Expense 3,540 8.950 Net Incone $ 8,260 $ 20,870 88 1 Op Assignment 6 (Ch 12 & 13) Save Help 5 Required: 1. Prepare a properly formatted statement of cash flows for Consultex for the year ended October 31, 2020 (using the indirect method). (Amounts to be deducted should be indicated by a minus sign.) 10 points Skipped CONSULTEX COMPANY Statement of Cash Flows For the Year Ended October 31, 2020 Cash flows from operating activities Net income Changes in current assets and current liabilities Accounts receivable Prepaid rent Wages payable $ 8,260 (3.600) 2,500 (5,000) 2,150 Cash provided by operating activities Cash flows from investing activities Purchased land (19.100) (19,100) Cash used in investing activities Cash flows from financing activities Repaid promissory note principal Paid cash dividends Repurchased company shares Issued new promissory note Issued new company shares Net change in cash Beginning cash position, October 31, 2016 Ending cash position, October 31, 2017 $