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, 2012, so all of the opening balances are zero. Additional information: 1. Recall from Chapter 15 that the company bought kitchen equipment (a commercial oven) for $17,000 on November 1, 2012, 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 14 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, 2013 Sales $462,500 Cost of goods sold 231,250 Gross profit 231,250 Operating expenses Salaries and wages expense $92,500 Depreciation expense 9,850 Other operating expenses 35,987 138,337 Income from operations 92,913 Other expenses Interest expense 413 Income before income tax 92,500 Income tax expense 18,500 Net income $ 74,000 COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 2013 Assets Current assets Cash $32,219 Accounts receivable 3,250 Inventory 17,897 Prepaid expenses 6,300 $ 59,666 Property, plant, and equipment Furniture and fixtures $12,500 Accumulated depreciation