Natalie has prepared the balance sheet and income statement of Cookie & Coffee Creations Inc. and...

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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, 2023 for the years 2023 and 2022 and the income statement for the year ended October 31, 2023, are presented below. COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, Assets Cash Accounts receivable Inventory Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable 2023 2022 $29,074 $11,550 3.250 2,710 7.897 7,450 5,800 6,050 102.000 75,500 (25,200) (9.100) $122,821 $94,160 2018 2017 $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 par-25,930 shares issued and outstanding 25,930 25,930 Additional paid-in capital-treasury stock 250 0 Retained earnings 26,802 16,800 Less: Treasury stock 0 (500) Total liabilities and stockholders' equity $122,821 $94,160 COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31, 2023 Sales Cost of goods sold Gross profit $485,625 222,694 262,931 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 Net income 9,251 $37,002 Additional information: 1. 2. 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. Additional equipment was bought for $14,000 on November 1, 2022. 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. Other equipment was bought for $13,000 cash. Dividends were declared on the preferred and common stock on October 15, 2023, to be paid on November 15, 2023. Accounts payable relate only to merchandise creditors. 3. 4. 5. 6. Prepaid expenses relate only to other operating expenses. 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, 2023 for the years 2023 and 2022 and the income statement for the year ended October 31, 2023, are presented below. COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, Assets Cash Accounts receivable Inventory Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable 2023 2022 $29,074 $11,550 3.250 2,710 7.897 7,450 5,800 6,050 102.000 75,500 (25,200) (9.100) $122,821 $94,160 2018 2017 $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 par-25,930 shares issued and outstanding 25,930 25,930 Additional paid-in capital-treasury stock 250 0 Retained earnings 26,802 16,800 Less: Treasury stock 0 (500) Total liabilities and stockholders' equity $122,821 $94,160 COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31, 2023 Sales Cost of goods sold Gross profit $485,625 222,694 262,931 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 Net income 9,251 $37,002 Additional information: 1. 2. 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. Additional equipment was bought for $14,000 on November 1, 2022. 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. Other equipment was bought for $13,000 cash. Dividends were declared on the preferred and common stock on October 15, 2023, to be paid on November 15, 2023. Accounts payable relate only to merchandise creditors. 3. 4. 5. 6. Prepaid expenses relate only to other operating expenses.