Continuing Cookie Chronicle 12 (Part Level Submission) 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 equipment (a commercial oven) for $29,000 on November 1, 2018, 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 2. 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, 2019 Sales revenue Cost of goods sold Gross profit Operating expenses $462,500 231,250 231,250 Salaries and wages expense Depreciation expense Other operating expenses 92,500 3,900 35,987 132,387 98,863 Income from operations Other expenses Interest expense 98,450 19,690 Income before income tax Income tax expense 413 98,450 19,690 $78,760 Interest expense Income before income tax Income tax expense Net income COOKIE&COFFEE CREATIONS INC. Balance Sheet October 31, 2019 Assets Current assets Cash Accounts receivable Inventory Prepaid expenses $86,219 3,250 17,897 6,300 $113,666 Property, plant, and equipment Furniture and fixtures Accumulated depreciation-furniture and fixtures Computer equipment Accumulated depreciation-computer equipment Kitchen equipment Accumulated depreciation-kitchen equipment $12,500 (1,250) 11,250 4,200 (600)3,600 29,000 (2,050)26,950 41,800 $155,466 Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Income tax payable Dividends payable $5,848 19,690 700 Dividends payable Salaries and wages payable Interest payable Note payable-current portion 2,250 188 4,000 $32,676 Long-term liabilities Note payable-long-term portion 6,000 38,676 Total liabilities Stockholders' equity Paid-in capital Preferred stock, 2,800 shares issued and outstanding Common stock, 25,930 shares issued, 25,180 shares outstanding $14,000 25,930 39,930 77,360 117,290 500 Retained earnings Total paid-in capital and retained earnings Less: Treasury stock (750 common shares) Total stockholders' equity 116,790 $155,466 Total liabilities and stockholders' equity 3. Recall from Chapter 11 that 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, to be paid on December 1 4. Prepaid expenses relate only to operating expenses. Your answer is partially correct. Try agairn Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2019, using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in 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 Net Income 78760 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 3900 Increase in Interest Payable 188 Increase in Accounts Receivable (3250) (17897) (6300) Increase in Inventory Increase in Prepaid Expenses Increase in Accounts Payable Increase in Income Taxes Payable Increase in Salaries and Wages Payable 5848 19690 2250 4429 Net Cash Provided by Financing Activities Net Increase in Cash Cash, November 1, 2018 Cash, October 31, 2019 13 8:30 86219 0 86219 Noncash Investing and Financing Activities Issuance of Note Payable to Purchase Kitchen Equipment 12000 Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2019, using the direct method. ( with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000). If answer is 0, please enter 0. Do not leave any fields bl COOKIE&COFFEE CREATIONS INC. Cash Flow Statement Year Ended October 31, 2019 Cash Flows from Operating Activities Cash Receipts From Customers 459250 Cash Payments To Suppliers (239299) Cash Payments For Operating Expenses (132387) Cash Payments For Interest (375) Cash Payments For Salaries and Wages 92500 199037 Net Cash Provided by Operating Activities 658287 Cash Flows from Investing Activities 12500) (12500) (4200) (29000) Purchase of Furniture Purchase of Computer Equipment Purchase of Kitchen Equipment Net Cash used by Investing Activities (45700) Cash Flows from Financing Activities Principal Repayment of Notes Payable 6000 9120923) Issuance of Common Stock Issuance of Preferred Stock 14000 Repurchase of Stock (500) Payment of Dividends (700) Net Cash Provided by Financing Activities 44730 Net Increase in Cash 86219 Cash, November 1, 2018 0 Repurchase of Stock (500) Payment of Dividends (700) Net Cash Provided by Financing Activities 44730 Net Increase in Cash 86219 Cash, November 1, 2018 0 Cash, October 31, 2019 86219 Noncash Investing and Financing Activities Issuance of Note Payable to Purchase Kitchen Equipment 12000 Click if you would like to Show Work for this question: Open Show Work LINK TO TEXTLINK TO TEXTLINK TO TEXT LINK TO TEXT LINK TO TEXT