E12-13 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, 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. In January 2018, Consultex had paid $14,000 to purchase land and repaid $3,000 principal on an existing promissory note. In March, the company paid $1,600 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 $4,600 by signing a new promissory note in May and also issued stock to a new private investor for $11600 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INC. Balance Sheet October 31 2018 2017 $ 8,650 $11,400 13,200 11,600 1,800 2,600 26,000 12,000 $49,650 $37,600 Assets Cash Accounts Receivable Prepaid Rent Land Total Assets Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and stockholders' Equity $ 1,800 $ 2,600 1,200 1,200 13,200 11,600 19,000 8,600 14,450 13,600 $42,650 $37,600 CONSUL/TRX, INC. Income Statement For the Year Ended October 31 2018 2012 Sales Revenue $156,000 $159,000 Salaries and Wages Expenne 97,600 96,600 Rent Expense 35,600 29,600 Utilities Expenses 19,300 19,600 Income before Income Tax Kxpense 3,500 13,200 Income Tax Expense 1.050 3,960 Net Income $ 2,450 $9,240 Required: 1. Prepare a properly formatted Statement of Cash Flows for Consultex, Inc., for the year ended October 31, 2018 (using the indirect method). (Amounts to be deducted should be indicated with a minus sign.) CONSULTEX, INC. Statement of Cash Flows For the Year Ended October 31, 2018 Cash Flows from Operating Activities: Changes in Current Assets and Current Liabilities 0 Cash Flows from Investing Activities: 0 Cash Flows from Financing Activities: $