Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What is the specific number of the last two lines? Net Decrease in Cash and Begining Cash Position, October 31, 2020? Thank you! Consultex, Incorporated,
What is the specific number of the last two lines? Net Decrease in Cash and Begining Cash Position, October 31, 2020?
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 $11,500 to purchase land and repaid $4,000 principal on an existing promissory note. In March, the company paid $1,100 cash for dividends and $1,100 to repurchase and eliminate Consultex stock that had previously been issued for $1,100. To Improve its cash position, Consultex borrowed $4100 by signing a new promissory note in May and also issued stock to a new private investor for $11,100 cash. Year-end comparative balance sheets and income statements are presented below CONSULTEX, INCORPORATED Balance Sheet October 31 2021 2020 $ 9,450 12,200 1,550 22,500 $ 45,789 $ 11,380 11,100 2,100 11,000 $ 35,500 Assets Cash Accounts Receivable Prepaid Rent Land Total Assets Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-tern) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity 5 1,550 1,100 11,200 18,109 13,750 $ 45,700 $ 2,100 1,100 11,100 8,109 13,100 $ 35,500 CONSULTEX, INCORPORATED Income Statement For the Year Ended October 31 Sales Revenue Salaries and Wages Expense Rent Expense Utilities Expenses Income before Income Tax Expense Income Tax Expense Net Income 2021 $ 153,500 97,100 35,100 18,800 2,500 750 $1,250 2020 $ 156,500 96,100 29, 100 19.100 12,200 3,660 38540 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.) 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.) CONSULTEX, INCORPORATED Statement of Cash Flows For the Year Ended October 31, 2021 Cash Flows from Operating Activities Net Incomo Changes in Current Assets and Current Liabilities Accounts Receivable (1.100) Prepaid Rent 550 Salaries and Wages Payable (550) $ 1,750 650 Cash Provided by Operating Activities Cash Flows from Investing Activities: Purchased Land (11,500) (11,500) Cash Used in Investing Activities Cash Flows from Financing Activities Paid Cash Dividends Repaid Promissory Note Principal Repurchased Company Common Stock Issued New Promissory Note issued New Company Common Stock (1.100) (4,000) (1.100) 4,100 11,100 9,000 Cash Provided by Financing Activities Net Decrease in Cash Beginning Cash Position, October 31, 2020 Ending Cash Position, October 31, 2021 $ Thank you!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started