Chap12 & 13 Question Set i Saved 3 8 points E12-13 (Algo) Preparing and Evaluating a...

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Chap12 & 13 Question Set i Saved 3 8 points E12-13 (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 $12,000 to purchase land and repaid $4,000 principal on an existing promissory note. In March, the company paid $1,200 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 $4,200 by signing a new promissory note in May and also issued stock to a new private investor for $11,200 cash. Year-end comparative balance sheets and income statements are presented below. eBook Assets Hint Cash Accounts Receivable Prepaid Rent Land References Total Assets CONSULTEX, INCORPORATED Balance Sheet October 31 Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity CONSULTEX, INCORPORATED Income Statement For the Year Ended October 31 2021 $ 10,290 12,400 1,600 22,000 $ 46,290 $ 1,600 1,000 11,400 18,400 13,890 $ 46,290 2020 $ 12,400 11,200 2,200 10,000 $ 35,800 $ 2,200 1,000 11,200 8,200 13,200 $ 35,800 Sales Revenue Salaries and Wages Expense Rent Expense Income before Income Tax Expense Utilities Expenses Income Tax Expense Net Income Required: 2021 $ 154,000 2020 $ 157,000 97,200 96,200 35,200 29,200 18,900 19,200 2,700 12,400 810 3,720 $ 1,890 $ 8,680 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.) Chap12 & 13 Question Set i Saved 3 8 points E12-13 (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 $12,000 to purchase land and repaid $4,000 principal on an existing promissory note. In March, the company paid $1,200 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 $4,200 by signing a new promissory note in May and also issued stock to a new private investor for $11,200 cash. Year-end comparative balance sheets and income statements are presented below. eBook Assets Hint Cash Accounts Receivable Prepaid Rent Land References Total Assets CONSULTEX, INCORPORATED Balance Sheet October 31 Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity CONSULTEX, INCORPORATED Income Statement For the Year Ended October 31 2021 $ 10,290 12,400 1,600 22,000 $ 46,290 $ 1,600 1,000 11,400 18,400 13,890 $ 46,290 2020 $ 12,400 11,200 2,200 10,000 $ 35,800 $ 2,200 1,000 11,200 8,200 13,200 $ 35,800 Sales Revenue Salaries and Wages Expense Rent Expense Income before Income Tax Expense Utilities Expenses Income Tax Expense Net Income Required: 2021 $ 154,000 2020 $ 157,000 97,200 96,200 35,200 29,200 18,900 19,200 2,700 12,400 810 3,720 $ 1,890 $ 8,680 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.)