Q2:

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 $12,500 to purchase land and repaid $4,000 principal on an existing promissory note. In March, the company paid $1,300 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 $4,300 by signing a new promissory note in May and also issued stock to a new private investor for $11,300 cash. Year-end comparative balance sheets and income statements are presented below.

CONSULTEX, INCORPORATED
Balance Sheet
October 31
	2021	2020
Assets
Cash	$ 8,130	$ 10,800
Accounts Receivable	12,600	11,300
Prepaid Rent	1,650	2,300
Land	24,500	12,000
Total Assets	$ 46,880	$ 36,400
Liabilities and Stockholders Equity
Salaries and Wages Payable	$ 1,650	$ 2,300
Income Taxes Payable	1,200	1,200
Notes Payable (long-term)	11,600	11,300
Common Stock	18,400	8,300
Retained Earnings	14,030	13,300
Total Liabilities and Stockholders Equity	$ 46,880	$ 36,400

CONSULTEX, INCORPORATED
Income Statement
For the Year Ended October 31
	2021	2020
Sales Revenue	$ 154,500	$ 157,500
Salaries and Wages Expense	97,300	96,300
Rent Expense	35,300	29,300
Utilities Expenses	19,000	19,300
Income before Income Tax Expense	2,900	12,600
Income Tax Expense	870	3,780
Net Income	$ 2,030	$ 8,820

Required:

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.)