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Current Attempt in Progress

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 $1,2020,$ so all of the opening balances are zero.

Additional information:

The company bought kitchen equipment $($a commercial oven$)$ for $$29,000$ on November $1,2020,$ and signed a $$12,000$ note payable to help pay for it$.$ The terms provide for semiannual fixed principal payments of $$2,000$ on 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.

Recall from Chapter $11$ that 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 $31,2021$

Income Statement

Year Ended October $31,2021$

$\backslash$table$[[$Sales revenue,$$462,500$

View Policies

Current Attempt in Progress

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 $1,2020,$ so all of the opening balances are zero.

Additional information:

The company bought kitchen equipment $($a commercial oven$)$ for $$29,000$ on November $1,2020,$ and signed a $$12,000$ note payable to help pay for it$.$ The terms provide for semiannual fixed principal payments of $$2,000$ on 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.

Recall from Chapter $11$ that 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 $31,2021$

Income Statement

Year Ended October $31,2021$

$\backslash$table$[[$Sales revenue,$$462,500$