Cookie Ceations 12

Natalie has prepared the balance sheet and income statement of Cookie & Coffee Creations Inc. and would like you to prepare the cash flow statement. The comparative balance sheet of Cookie & Coffee Creations Inc. at October 31, 2018 for the years 2018 and 2017 and the income statement for the year ended October 31, 2018, are presented below.

COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31,
Assets		2018			2017
Cash		$22,324			$5,550
Accounts receivable		3,250			2,710
Inventory		7,897			7,450
Prepaid expenses		5,800			6,050
Equipment		102,000			75,500
Accumulated depreciation equipment		(25,200	)		(9,100	)
Total assets		$116,071			$88,160
Liabilities and Stockholders Equity		2018			2017
Accounts payable		$1,150			$2,450
Income taxes payable		9,251			7,200
Dividends payable		27,000			27,000
Salaries and wages payable		7,250			1,280
Interest payable		188			0
Note payable		10,000			0
Preferred stock, no par, $6 cumulative, 3,000 and 2,800 shares issued, respectively		15,000			14,000
Common stock, $1 par25,180 shares issued and outstanding		25,180			25,180
Additional paid-in capitaltreasury stock		250			250
Retained earnings		20,802			10,800
Total liabilities and stockholders equity		$116,071			$88,160

COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31, 2018
Sales				$485,625
Cost of goods sold				222,694
Gross profit				262,931
Operating expenses
Salaries and wages expense		$147,979
Depreciation expense		17,600
Other operating expenses		48,186		213,765
Income from operations				49,166
Other expenses
Interest expense		$413
Loss on disposal of plant assets		2,500		2,913
Income before income tax				46,253
Income tax expense				9,251
Net income				$37,002

Additional information:

1.		Equipment (cost $4,500 and book value $3,000) was disposed of at the beginning of the year for $500 cash and replaced with new equipment purchased for $4,000 cash.
2.		Additional equipment was bought for $14,000 on November 1, 2017. A $12,000 note payable was signed. The terms provide for equal semi-annual installment payments of $2,000 on May 1 and November 1 of each year, plus interest of 5% on the outstanding principal balance.
3.		Other equipment was bought for $13,000 cash.
4.		Dividends were declared on the preferred and common stock on October 15, 2018, to be paid on November 15, 2018.
5.		Accounts payable relate only to merchandise creditors.
6.		Prepaid expenses relate only to other operating expenses.

I've already completed the first part of this questions for the most part.

A)

B) Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2018, using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

COOKIE & COFFEE CREATIONS INC. Statement of Cash Flows For the Year Ended October 31, 2018 Cash Mows from Operating Activities Net Income 37002 Net Cash used by Operating Activities Loss on Disposal of Plant Assets Depreciation Expense Increase in Accounts Receivable iniciririnin Increase in Inventory Decrease in Prepaid Expenses Increase in Interest Payabile Increase in Salaries and Wages Payable Increase in Income Taxes Payable Decrease in Accounts Payable Net Cash Provided by Operating Activities Cash flows from Investing Activities Purchase of Equipment 1 - 19000 Sale of Equipment 500 Net Cash used by Investing Activities Cash Pows from Financing Activities Issuance of Note Payable to purchase Equipment Issuance of Preferred Stock 1000 1 Payment of Cash Dividends 1 -27000 Net Cash used by Financing Activities Net Increase in Cash Cash, November 1 Cash, October 31 Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2018, using the direct method. (Sho COOKIE & COFFEE CREATIONS INC. Statement of Cash Flows Mmm Mmm Mmm x BI MATAN AWA 00 i nfo - COOKIE & COFFEE CREATIONS INC. Statement of Cash Flows For the Year Ended October 31, 2018 Cash Mows from Operating Activities Net Income 37002 Net Cash used by Operating Activities Loss on Disposal of Plant Assets Depreciation Expense Increase in Accounts Receivable iniciririnin Increase in Inventory Decrease in Prepaid Expenses Increase in Interest Payabile Increase in Salaries and Wages Payable Increase in Income Taxes Payable Decrease in Accounts Payable Net Cash Provided by Operating Activities Cash flows from Investing Activities Purchase of Equipment 1 - 19000 Sale of Equipment 500 Net Cash used by Investing Activities Cash Pows from Financing Activities Issuance of Note Payable to purchase Equipment Issuance of Preferred Stock 1000 1 Payment of Cash Dividends 1 -27000 Net Cash used by Financing Activities Net Increase in Cash Cash, November 1 Cash, October 31 Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2018, using the direct method. (Sho COOKIE & COFFEE CREATIONS INC. Statement of Cash Flows Mmm Mmm Mmm x BI MATAN AWA 00 i nfo