Consultex Company was founded in 2011 as a small financial consulting business. The company had done reasonably well in 2011-2013, but noticed that its cash was beginning to dwindle early in 2014. In January 2014, Consultex had paid $16,000 to purchase land and repaid $2,000 principal on an existing promissory note. In March 2014, the company paid $2,000 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 $5,000 by signing a new promissory note in May 2014 and also issued shares to a new private investor for $12,000 cash. Comparative balance sheets and income statements for the most recent fiscal year are presented below.

Required:
1. Prepare a properly formatted statement of cash flows for Consultex for the year ended October 31, 2014 (using the indirect method).
2. What one thing can Consultex reasonably change in 2015 to avoid depleting its cash?

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CONSULTEX COMPANY Balance Sheet October 31 2014 2013 Assets Cash $11,000 $14,000 Accounts Receivable 14,000 12,000 Prepaid Rent 3,000 10,000 $39,000 2,000 Land 26,000 $53,000 Total Assets Liabilities and Shareholders' Equity Wages Payable Income Taxes Payable Notes Payable (long-term) Contributed Capital Retained Earnings Total Liabilities and Shareholders' Equity $ 2,000 $ 3,000 1,000 1,000 15,000 12,000 20,000 15,000 $53,000 9,000 14,000 $39,000 CONSULTEX COMPANY Income Statement For the Year Ended October 31 2014 2013 Sales Revenue $158,000 $161,000 Wages Expense Rent Expense Other Operating Expenses Income before Income Tax Expense Income Tax Expense 98,000 97,000 36,000 19,700 4,300 1,300 $ 3,000 30,000 20,000 14,000 4,200 $ 9,800 Net Income