ixtures Computer equipment Natalie has prepared the balance sheet and income statement of Cookie & Coffee...

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ixtures Computer equipment 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, 2018, so all of the opening balances are zero. Additional information: 1. The company bought kitchen equlpment (a commerclal oven) for $29,000 on November 1, 2018, and signed a $12,000 note payable to help pay for It. The terms provide for semlannual flxed principal payments of $2,0 May 1 and November 1 of each year, plus interest of 5%. All other furniture, fixture, and equipment were purchased during the year for cash. 2. Recall from Chapter 11 that Ihe 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, 2019 Sales revenue 5462,500 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 COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 2019 Assets Curent assets Cash $86,219 Accounts receivable 3,250 Inventory 17,897 Prepaid expenses 6,300 $113,666 Property, plant, and equipment Furniture and fixtures $12,500 (1,250) 4,200 (600) Accumulated depreclation-furniture and fixtures 11,250 Computer equipment Accurmulated depreciation-cornputer equipment 3,600 Kitchen equipment 29,000 Accumulated depreciation-kitchen equipment (2,050) 26,950 41,800 Total assets $155,466 Liabilities and Stockholders' Equity Current liabilities Accounts payable $5,848 Income tax payable Dividends payable 19,690 700 Salaries and wages payable 2,250 Interest payable 188 Note payable-current portion 4,000 $32,676 Long-term liabilities Note payable-long-term portion 6,000 Total llabilitles Stockholders' equity Paid-in capital 38,6/6 Preferred stock, 2,800 shares issued and outstanding $14,000 Common stock, 25,930 shares Issued, 25,180 shares outstanding 25,930 39,930 Retalned eamings 77,360 Total paid-in capital and retained eamings 117,290 Less: Treasury stock (750 common shares) 500 Total stockholders' equity 116,790 Total liabilities and stockholders' equity $155,466 3. Recall froTI Chapter 11 that the cormpany declared a serniannual dividend to the preferred stockholders on April 30, and the dividend was paid on June 1. The second sermiannual dividend was declared to the preferred stockholders on October 31, to be pald on December 1. 4. Prepaid expenses relate only to operating expenses. (a) V Your answer is correct. Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2019, using the indirect method. (Sh parenthesis e.g. (15,000). If answer is 0, please enter 0. Do not leave any fields blank.) COOKIE & COFFEE CREATIONS INC. Cash Flow Statement Year Ended October 31, 2019 Cash Flows from Operating Activities<br> TNet Income $78,760 Adjustments to reconcile net income to TNet Cash Provided by Operating Activities<br> Depreciation Expense $3,900 Increase in Interest Payable T188] Increase in Accounts Receivable 3,250) TIncrease in Inventory (17,897) TIncrease in Prepaid Expenses T(6,300)| TIncrease in Accounts Payable 15,848 Tincrease in Income Taxes Payable T19,690 TIncrease in Salaries and Wages Payable 2,250 4,429 TNet Cash Provided by Operating Activities<br> 83,189 TCash Flows from Investing Activities Purchase of Furniture s(12,500)| Purchase of Computer Equipment) T4,200) Purchase of Kitchen Equipment T17,000 TNet Cash used by Investing Activities<br> 733,700 Cash Flows from Financing Activities TPrincipal Repayment of Notes Payable -2,000 Tİssuance of Preferred Stock 14,000 İssuance of Common Stock T25,930 TRepurchase of Stock<br> (500) Payment of Dividends (700) TNet Cash Provided by Financing Activities 36,730 TNet Increase in Cash<br> T86,219 Cash, November 1, 2018<br> Cash, October 31, 2019 $86,219 TNoncash Investing and Financing Activities Tİssuance of Note Payable to Purchase Kitchen Equipment $12,000 (b) Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2019, using the direct method. parenthesis e.g. (15,000). If answer is o, please enter 0. Do not leave any fields blank.) COOKIE & COFFEE CREATIONS INC, Cash Flow Statement $ $ ixtures Computer equipment 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, 2018, so all of the opening balances are zero. Additional information: 1. The company bought kitchen equlpment (a commerclal oven) for $29,000 on November 1, 2018, and signed a $12,000 note payable to help pay for It. The terms provide for semlannual flxed principal payments of $2,0 May 1 and November 1 of each year, plus interest of 5%. All other furniture, fixture, and equipment were purchased during the year for cash. 2. Recall from Chapter 11 that Ihe 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, 2019 Sales revenue 5462,500 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 COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 2019 Assets Curent assets Cash $86,219 Accounts receivable 3,250 Inventory 17,897 Prepaid expenses 6,300 $113,666 Property, plant, and equipment Furniture and fixtures $12,500 (1,250) 4,200 (600) Accumulated depreclation-furniture and fixtures 11,250 Computer equipment Accurmulated depreciation-cornputer equipment 3,600 Kitchen equipment 29,000 Accumulated depreciation-kitchen equipment (2,050) 26,950 41,800 Total assets $155,466 Liabilities and Stockholders' Equity Current liabilities Accounts payable $5,848 Income tax payable Dividends payable 19,690 700 Salaries and wages payable 2,250 Interest payable 188 Note payable-current portion 4,000 $32,676 Long-term liabilities Note payable-long-term portion 6,000 Total llabilitles Stockholders' equity Paid-in capital 38,6/6 Preferred stock, 2,800 shares issued and outstanding $14,000 Common stock, 25,930 shares Issued, 25,180 shares outstanding 25,930 39,930 Retalned eamings 77,360 Total paid-in capital and retained eamings 117,290 Less: Treasury stock (750 common shares) 500 Total stockholders' equity 116,790 Total liabilities and stockholders' equity $155,466 3. Recall froTI Chapter 11 that the cormpany declared a serniannual dividend to the preferred stockholders on April 30, and the dividend was paid on June 1. The second sermiannual dividend was declared to the preferred stockholders on October 31, to be pald on December 1. 4. Prepaid expenses relate only to operating expenses. (a) V Your answer is correct. Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2019, using the indirect method. (Sh parenthesis e.g. (15,000). If answer is 0, please enter 0. Do not leave any fields blank.) COOKIE & COFFEE CREATIONS INC. Cash Flow Statement Year Ended October 31, 2019 Cash Flows from Operating Activities<br> TNet Income $78,760 Adjustments to reconcile net income to TNet Cash Provided by Operating Activities<br> Depreciation Expense $3,900 Increase in Interest Payable T188] Increase in Accounts Receivable 3,250) TIncrease in Inventory (17,897) TIncrease in Prepaid Expenses T(6,300)| TIncrease in Accounts Payable 15,848 Tincrease in Income Taxes Payable T19,690 TIncrease in Salaries and Wages Payable 2,250 4,429 TNet Cash Provided by Operating Activities<br> 83,189 TCash Flows from Investing Activities Purchase of Furniture s(12,500)| Purchase of Computer Equipment) T4,200) Purchase of Kitchen Equipment T17,000 TNet Cash used by Investing Activities<br> 733,700 Cash Flows from Financing Activities TPrincipal Repayment of Notes Payable -2,000 Tİssuance of Preferred Stock 14,000 İssuance of Common Stock T25,930 TRepurchase of Stock<br> (500) Payment of Dividends (700) TNet Cash Provided by Financing Activities 36,730 TNet Increase in Cash<br> T86,219 Cash, November 1, 2018<br> Cash, October 31, 2019 $86,219 TNoncash Investing and Financing Activities Tİssuance of Note Payable to Purchase Kitchen Equipment $12,000 (b) Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2019, using the direct method. parenthesis e.g. (15,000). If answer is o, please enter 0. Do not leave any fields blank.) COOKIE & COFFEE CREATIONS INC, Cash Flow Statement $ $

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a Prepare a statement of cash flows for CC for year ended October 31 2020 using indirect method Stat... View the full answer