Required:

Prepare a properly formatted Statement of Cash Flows for Consultex, Inc., for the year ended October 31, 2018 (using the indirect method). (Amounts to be deducted should be indicated with a minus sign.)

CONSULTEX, INC.
Statement of Cash Flows
For the Year Ended October 31, 2018
Cash Flows from Operating Activities:
Changes in Current Assets and Current Liabilities
		0
Cash Flows from Investing Activities:
		0
Cash Flows from Financing Activities:
		0
		$0

Consultex, Inc., was founded in 2015 as a small financial consulting business. The company had done reasonably well in 2015- 2017 but started noticing its cash dwindle early in 2018. In January 2018, Consultex had paid $16,000 to purchase land and repaid $2,000 principal on an existing promissory note. In March, the company paid $2,000 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 $5,000 by signing a new promissory note in May and also issued stock to a new private investor for $12,000 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INC Balance Sheet October 31 2018 2017 Assets Cash Accounts Receivable Prepaid Rent Land $11,000 $14,000 14,000 12,000 3,000 26,000 10,000 $53,000 $39,000 2,000 Total Assets Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earnings $ 2,000 3,000 1,000 1,000 15,000 12,000 9,000 15,000 14,000 $53,000 $39,000 20,000 Total Liabilities and Stockholders' Equity CONSULTEX, INC. Income Statement For the Year Ended October 31 2018 2017 Sales Revenue Salaries and Wages Expense Rent Expense Utilities Expenses Income before Income Tax Expense Income Tax Expense Net Income $158,000 $161,000 98,000 97,000 36,000 30,000 19,700 20,000 14,000 4,200 $ 3,000 9,800 4,300 1,300