Consultex, Inc. was founded in 2012 as a small financial consulting business. The company had done reasonably well in 2012-2014 but started noticing its cash dwindle earny in 2015. In January 2015, 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, Consuitex 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, INC Balance Sheet October 31 2015 2014 Cash Accounts Receivable Prepaid Rent Land $ 8,170 $12,000 13,800 11,900 1,950 2,900 27.50012,000 $51,420 $38,800 Total Assets Liabilities and Stockholders' Equity Salaries and Wages Payable Income Taxes Payable Notes Payable (long-term) Common Stock Retained Earnings $ 1,950 2,900 ,200 1,200 13,800 11,900 19,600 8,900 14.870 13,900 $51,420 $38,800 Total Liabilities and Stockholders Equity CONSULTEX, INC Income Statement For the Year Ended October 31 2015 2014 Sales Revenue Salaries and Wages Expense Rent Expense Prepaid Rent Utilities Expenses Income before Income Tax Expense Income Tax Expense Net Income $157,500 $160,500 97,900 6,900 35,900 29,900 19.600 9.900 4,100 13,800 4,140 1,230 2,870 9,660