Consultex Company was founded in 2014 as a small financial consulting business. The company had done reasonably well in 2014- 2016, but noticed that its cash was beginning to dwindle early in 2017. In January 2017, Consultex had paid $19,550 to purchase land and repaid $2,100 principal on an existing promissory note. In March 2017, the company paid $2,150 cash in dividends and $1,000 to repurchase Consultex shares that had previously been issued for $1,000. To improve its cash position, Consultex borrowed $6,800 by signing a new promissory note in May 2017 and also issued shares to a new private investor for $10,000 cash. Comparative balance sheets and income statements for the most recent fiscal year are presented below. CONSULTEX COMPANY Balance Sheet October 31 2017 2016 Assets Cash Accounts Receivable Prepaid Rent Land $13,630 $18, 150 16,100 13,000 3,200 4,300 30,900 11,350 Total Assets $63,830 $46,800 Liabilities and Shareholders' Equity Wages Payable Income Taxes Payable Notes Payable (long-term) Contributed Capital Retained Earnings $ 3,500 $ 7,250 5,250 5,250 21,150 16,450 19,500 10,500 14,430 7,350 Total Liabilities and Shareholders' Equity $63,830 $46,800 CONSULTEX COMPANY Income Statement For the Year Ended October 31 2017 2016 Sales Revenue $206,000 $212,300 Wages Expense 127,720 127,380 Rent Expense 33,000 27,000 Other Operating Expenses 32,100 28,400 Income before Income Tax Expense Income Tax Expense 13,180 3,950 29,520 8,860 Net Income $ 9,230 $ 20,660 Required: 1. Prepare a properly formatted statement of cash flows for Consultex for the year ended October 31, 2017 (using the indirect method). (Amounts to be deducted should be indicated by a minus sign.) CONSULTEX COMPANY Statement of Cash Flows For the Year Ended October 31, 2017 Cash flows from operating activities Net income Changes in current assets and current liabilities Cash flows from investing activities Cash flows from financing activities Net income Changes in current assets and current liabilities Cash flows from investing activities Cash flows from financing activities Net change in cash Beginning cash position, October 31, 2016 Ending cash position, October 31, 2017