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 $462,500 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 $86,219 3,250 17,897 6,300 $113,666 11,250 COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 2019 Assets Current assets Cash Accounts receivable Inventory Prepaid expenses Property, plant, and equipment Furniture and fixtures Accumulated depreciation-furniture and fixtures Computer equipment Accumulated depreciation-computer equipment Kitchen equipment Accumulated depreciation-kitchen equipment Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Income tax payable Dividends payable Salaries and wages payable Interest payable Note payable-current portion Long-term liabilities lots oblolos toros sorties $12,500 (1,250) 4,200 (600) 29,000 (2,050) 3,600 26,950 41,800 $155,466 $5,848 19,690 700 2,250 188 4,000 $32,676 19,090 700 2,250 188 4,000 $32,676 6,000 38,676 Income tax payadie Dividends payable Salaries and wages payable Interest payable Note payable-current portion Long-term liabilities Note payable-long-term portion 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 Retained earnings Total paid-in capital and retained earnings Less: Treasury stock (750 common shares) Total stockholders' equity Total liabilities and stockholders' equity $14,000 25,930 39,930 77,360 117,290 500 116,790 $155,466 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. (a) 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. 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 Noncash Investing and Financing Activities Depreciation Expense 3900 Increase in Accounts Receivable -3250 Increase in Inventory -17897 Increase in Prepaid Expenses -6300 Increase in Accounts Payable 5848 Increase in Income Taxes Payable 19690 Increase in Salaries and Wages Payable 2250 Increase in Interest Payable 188 4429 Net Cash Provided by Operating Activities 83189 Cash Flows from Investing Activities Purchase of Furniture - 12500 Purchase of Computer Equipment -4200 Purchase of Kitchen Equipment -17000 Net Cash used by Investing Activities -33700 Cash Flows from Financing Activities Issuance of Note Payable to purchase Kitchen Equipment to -2000 Issuance of Preferred Stock 14000 Issuance of Common Stock 25930 Repurchase of Stock -500 Payment of Dividends -700 Net Cash Provided by Financing Activities 36730 Net Increase in Cash Payment of Dividends Net Cash Provided by Financing Activities 36730 Net Increase in Cash Cash, November 1, 2018 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 Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER 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 $462,500 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 $86,219 3,250 17,897 6,300 $113,666 11,250 COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 2019 Assets Current assets Cash Accounts receivable Inventory Prepaid expenses Property, plant, and equipment Furniture and fixtures Accumulated depreciation-furniture and fixtures Computer equipment Accumulated depreciation-computer equipment Kitchen equipment Accumulated depreciation-kitchen equipment Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Income tax payable Dividends payable Salaries and wages payable Interest payable Note payable-current portion Long-term liabilities lots oblolos toros sorties $12,500 (1,250) 4,200 (600) 29,000 (2,050) 3,600 26,950 41,800 $155,466 $5,848 19,690 700 2,250 188 4,000 $32,676 19,090 700 2,250 188 4,000 $32,676 6,000 38,676 Income tax payadie Dividends payable Salaries and wages payable Interest payable Note payable-current portion Long-term liabilities Note payable-long-term portion 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 Retained earnings Total paid-in capital and retained earnings Less: Treasury stock (750 common shares) Total stockholders' equity Total liabilities and stockholders' equity $14,000 25,930 39,930 77,360 117,290 500 116,790 $155,466 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. (a) 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. 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 Noncash Investing and Financing Activities Depreciation Expense 3900 Increase in Accounts Receivable -3250 Increase in Inventory -17897 Increase in Prepaid Expenses -6300 Increase in Accounts Payable 5848 Increase in Income Taxes Payable 19690 Increase in Salaries and Wages Payable 2250 Increase in Interest Payable 188 4429 Net Cash Provided by Operating Activities 83189 Cash Flows from Investing Activities Purchase of Furniture - 12500 Purchase of Computer Equipment -4200 Purchase of Kitchen Equipment -17000 Net Cash used by Investing Activities -33700 Cash Flows from Financing Activities Issuance of Note Payable to purchase Kitchen Equipment to -2000 Issuance of Preferred Stock 14000 Issuance of Common Stock 25930 Repurchase of Stock -500 Payment of Dividends -700 Net Cash Provided by Financing Activities 36730 Net Increase in Cash Payment of Dividends Net Cash Provided by Financing Activities 36730 Net Increase in Cash Cash, November 1, 2018 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 Attempts: 0 of 3 used