Salaries and Wages Depreciation Utilities Office Net Income Decrease in Accounts Receivable Paid cash for equipment Increase in Salaries and Wages Payable Decrease in Accounts Payable Required: $ 42,650 7,430 6,130 2,350 58,560 $8,740 $ 13,300 6,300 10,300 4,900 1. Present the operating activities section of the statement of cash flows for New Vision Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Answer is complete but not entirely correct. NEW VISION COMPANY Cash Flows from Operating Activities-Indirect Method Net Income Adjustments to Reconcile Net Income to Cash Provided by Operating Activities $9,000 Depreciation 7,300 Changes in Current Assets and Current Liabilities Accounts Receivable Decrease Salaries and Wages Payable Increase Accounts Payable Decrease Net Cash Provided by Operating Activities 12,000 9,000 (4,250) 6 $ 33,050 ces 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 $14,500 to purchase land and repaid $3,000 principal on an existing promissory note. In March, the company paid $1,700 cash for dividends and $1,100 to repurchase and eliminate Consultex stock that had previously been issued for $1,100. To improve its cash position, Consultex borrowed $4,700 by signing a new promissory note in May and also issued stock to a new private investor for $11,700 cash. Year-end comparative balance sheets and income statements are presented below. Assets Cash Accounts Receivable Prepaid Rent Land CONSULTEX, INCORPORATED Balance Sheet October 31 2021 2020 $ 9,490 13,400 1,850 $ 12,500 11,700 25,500 $ 50,240 2,700 11,000 $37,900 $1,850 1,100 $ 2,700 1,100 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 CONSULTEX, INCORPORATED Income Statement For the Year Ended October 31 Sales Revenue Salaries and Wages Expense Rent Expense Utilities Expenses Incone before Income Tax Expense Incone Tax Expense Net Income Required: 13,400 19,300 14,590 11,700 8,700 13,700 $50,240 $ 37,900 2021 $ 156,500 2020 $159,500 97,700 96,700 35,700 29,700 19,400 19,700 3,700 13,400 1,110 4,020 $2,590 $9,380 the formatted Statement of Cash Flows for Consultex, Incorporated, for the year ended October 31, 2021 (using the CONSULTEX, INCORPORATED Statement of Cash Flows For the Year Ended October 31, 2021 Cash Flows from Operating Activities: Net Income Changes in Current Assets and Current Liabilities Cash Provided by Operating Activities Cash Flows from Investing Activities: 0 0 ces Cash Flows from Financing Activities: 0 $ 0