12-13 1. and 2. thanks!!

E12-13 Preparing and Evaluating a Statement of Cash Flows (Indirect Method) from Comparative Balance Sheets and Income Statements 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. 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 In January 2018, Consultex had paid $16,000 to purchase land and repaid $2,000 principal on an income statements are presented below. decreased (D) during the period: counts Payable, and (d) Accrued Liabilities. LO 12 CONSULTEX, INC. Balance Sheet October 31 2018 2017 Cash Accounts Receivable Prepaid Rent Land Total Assets $11,000 14.000 2,000 26,000 $53,000 $14.000 12.000 3.000 10,000 $39.000 Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $ 2,000 1.000 15,000 20.000 15.000 $53,000 $ 3.000 1.000 12.000 9.000 14.000 $39.000 CONSULTEX, INC. Income Statement For the Year Ended October 31 2018 2017 Sales Revenue Salaries and Wages Expense Pent Expense Utilities Expenses Income before Income Tax Expense Income Tax Expense Not Income $158,000 98,000 36,000 19,700 4,300 1.300 $ 3,000 $161.000 97,000 30,000 20.000 14.000 4,200 $9,800 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 98,000 36,000 19,700 4,300 1,300 $ 3,000 $161,000 97,000 30,000 20,000 14,000 4,200 $ 9,800 Requirements: 1. Prepare a properly formatted Statement of Cash Flows for Consultex, Inc., for the year ended October 31, 2018 (using the indirect method). 2. What one thing can Consultex reasonably change in 2019 to avoid depleting its cash