$12-13($Algo$)$ Preparing and Evaluating a Statement of Cash Flows $($Indirect Method$)$ from Comparative Balance Sheets and Income Statements $[$LO $12-1,$ LO $12-2,$ LO $12-3,$ LO $12-4,$ LO $12-5]$

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 $$15,500$ to purchase land and repaid $$3,000$ principal on an existing promissory note. In March, the company paid $$1,900$ cash for dividends and $$1,200$ to repurchase and eliminate Consultex stock that had previously been issued for $$1,200.$ To improve its cash position, Consultex borrowed $$4,900$ by signing a new promissory note in May and also issued stock to a new private investor for $$11,900$ cash. Year$-$end comparative balance sheets and income statements are presented below.

CONSULTEX, INCORPORATED

Balance Sheet

October $31$

$20212020$

Assets

Cash $ $8,170$ $ $12,000$

Accounts Receivable $13,80011,900$

Prepaid Rent $1,9502,900$

Land $27,50012,000$

Total Assets $ $51,420$ $ $38,800$

Liabilities and Stockholders$$ Equity

Salaries and Wages Payable $ $1,950$ $ $2,900$

Income Taxes Payable $1,2001,200$

Notes Payable $($long$-$term$)13,80011,900$

Common Stock $19,6008,900$

Retained Earnings $14,87013,900$

Total Liabilities and Stockholders$$ Equity $ $51,420$ $ $38,800$

CONSULTEX, INCORPORATED

Income Statement

For the Year Ended October $31$

$20212020$

Sales Revenue $ $157,500$ $ $160,500$

Salaries and Wages Expense $97,90096,900$

Rent Expense $35,90029,900$

Utilities Expenses $19,60019,900$

Income before Income Tax Expense $4,10013,800$

Income Tax Expense $1,2304,140$

Net Income $ $2,870$ $ $9,660$

Required:

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.$)$