Create a statement of cash flows using the direct method and a statement of cash floss indirect method

CHAPTER 17 Cookie Creations (Note: This is a continuation Of the Cookie Creations from Chapters 1 through 16.) CC17 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 Statement Of cash lows. The income statement and balance sheet appear below- For this assignment. assume all Stock was issued for cash and that an opening account balances are zero at November 1 , 2023. Additional information: 2. The company bought kitchen equ@ment (a commercial Oven) $17,000 on November 1, 2023. and Signed a $ 12.000 note payable to help pay for it. The terms provide for principal payments of S2,OOO on May 1 and November 1 of each year. plus interest of 5%. All other fumiture. fixture. and equOment were purchased durtg the year for cash. The company issued 25,930 common shares for $25,930. Of which 750 Shares were repurchased from the lawyer who provided legal advice during the incorporation process for $500. Again, assume Shares were originany issued for cash. COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31, 2024 Sales revenue Cost Of goods Sold Gross profit Operating expenses Salaries and wages expense Depreciation expense Other operating expenses Income from operations Other expenses Interest expense Income before income tax Income tax expense Net incorne $92,500 9,850 COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 2024 Current assets Cash Accounts receivable Inventory Prepaid rent Property, plant. and equipment Equipment Accumulated Total assets Current liabilities Accounts payable Income taxes payable Dividends payable Salaries and wages payable Interest payable Notes payablecurrent portion Long-term liabilities Notes payablelong-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 outstanding Retained earnings Total paidin capital and retained earnings Less: Treasury stockcommon (750 shares), at cost Total stockholders' equity Total "abilities and Stockholders' equity Instructions $462,500 231 ,250 -l.u.zaa 93,050 92,500 $32219 3250 17.897 $99,700 S 5.786 18,500 700 2,250 250 39,930 112,530 S 59,666 aa.ua $31 ,486 37,486 $14,000 _z=.aa (b) Prepare a statement Of cash wows for Cookie & Coffee Creations Inc. for the year ended October 31.2024. using the indirect method. Prepare a Statement Of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31.2024, using the d*eCt methodi