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 1,2020, so all of the opening balances are zero. Additional information: 1. The company bought kitchen equipment (a commercial oven) for $29,000 on November 1,2020 , 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, 2021 Sales revenue $462,500231,250231,250 Operating expenses Salaries and wages expense $92,500 Depreciation expense 3,900 \begin{tabular}{lrrr} Other operating expenses & 35,987 & & 132,387 \\ \cline { 4 - 4 } ncome from operations & & & 98,863 \end{tabular} Other expenses \begin{tabular}{lr} \multicolumn{1}{l}{ Interest expense } & 413 \\ \cline { 2 - 2 } Income before income tax & 98,450 \\ Income tax expense & 19,690 \\ \hline Net income & $78,760 \\ \hline \end{tabular} COOKIE \& COFFEE CREATIONS INC. Balance Sheet October 31, 2021 Assets Current assets Cach Accounss receivable Proserty, plant, and equipment Furniture and fixtures \begin{tabular}{ll} $12.500 \\ 4,200(1.250) & 11.250 \\ 29,0001600) & 3,600 \\ (2.050) & 26.850 \\ \hline \end{tabular} Liabilities and Stockholders' Equity Current liabilities Accounts payable Income tax payable Dividends payable Salaries and wages payable Interest payable Note payable-current portion Long-termliabilities Note payable-long-term portion Total liabilities $5,84819,6907002,2501884,000 Stockholders' equity Paid-in capital Preferred stock, 2,800 shares issued and outstanding: $14,000 Common stock, 25,930 shares issued, 25,180 shares outstanding 25,93039,930 Retained earnings Total paid-in capital and retained earnings 38,6766,000 Less: Treasury stock (750 common shares) Total stockholders' equity Total liabilities and stockholders' equity 3. Recall from Chapter 11 that the company deciared 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; COOXIE A COFFEE CREATIONS INC. Cach flow statement Adjustmentis to recorkilr net ncome to 3