Current Attempt in Progress

Natalie has prepared the balance sheet and income statement of Cookie Current Attempt in Progress

Natalie has prepared the balance sheet and income statement of Cookie

Natalie has prepared the balance sheet and income statement of Cookie & Coffee Creations Inc. for the first year of operations, but does not understand how to prepare the cash flow statement. The income statement and balance sheet appear below. Recall that the company started operations on November $1,2028,$ and had beginning balances in Accounts Receivable, Inventory and Equipment $($other$)$ related to the noncash assets contributed in exchange for common stock when the company was formed.

Additional information:

The company bought kitchen equipment $($a commercial oven$)$ for $$29,000$ on November $1,2028,$ and signed a $$12,000$ note payable to help pay for it$.$ The terms provide for semiannual foxed principal payments of $$2,000$ on May $1$ and November $1$ of each year, plus interest of $5\%.$ All other furniture, future, and equipment were purchased during the year for cash.

The company originally issued $25,930$ common shares for $$25,930,$ of which $750$ shares were repurchased from the lawyer for $$500.$

COOKIE & COFFEE CREATIONS INC.

Income Statement

Year Ended October $31,2029$

Sales revenue

$$462,500$

$\backslash$table$[[$Cost of goods sold,$231,250],[$Gross profit,,$231,250],[$Operating expenses$],[$Salaries and wages expense,$$92,500,],[$Depreciation expense,$3,900,],[$Other operating expenses,$35,987,132,387],[$Income from operations,,$98,863],[$Other expenses$],[$Interest expense,,$413],[$Income before income tax,,$98,450],[$Income tax expense,,$19,690],[$Net Income,,$$78,760]]$

Current assuets

Canh

Accounts receivable

Inventory

Prepiifopennen

Property, plant, and equipment

furmberesulature

Accumdated depreciation furnilure and fieluers

Comotarsolumint

Accumulated depreciation$-$Corrputer equipnent

$15401011$ equipment

Rocumulated depreciation$-$Kiethen equipment

$$86\mathrm{.}219$

$3250$

$17897$

$0\mathrm{.}440$

$$111686$

$\backslash$table$[[$Current figbilibes$],[$Acoounts payable,,$55\mathrm{.}808,],[$Income tax payalle,,$19,490,],[$Dividents payable,,$700,],[$Saluries and wages payable,,$2\mathrm{.}250,],[$Anterest pay able,,$188,],[$Nobte paysle$-$current portion,,$4,000,532\mathrm{.}676],[$tongternfablities$],[$Note paydife$-$tone term portion,,,$6\mathrm{.}000],[$Total

The company declared a semiannual dividend to the preferred stockholders on April $30,$ and the dividend was paid on June $1.$ The second semiannual dividend was declared to the preferred stockholders on October $31,$ and the dividend is to be paid on December $1,2029.$

Prepaid expenses relate only to operating expenses.

$($a$)$

$($b$)$

Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October $31,2029,$ using the direct method. $($Show amounts that decrease cash flow with either a $-$ sign eg$.-15,000$ or in parenthesis e$.$g$.(15,000).$ Do not leave any answer field blank. Enter O for amounts.$)$liabilities$,,,38\mathrm{.}676],[$Stockholders$\text{'}$ equity.