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 balance sheet appear below. Recall that the company started operations on November 1, 2018 prepare the cash flow statement. The income statement and all of the opening balances are zero Additional Information: pay for It. he tems provide for semlannual fixed princlpal payments of $2,0 1 May 1 and Noamber 1 of each vear plus intarest of 5% Allother furnituure fixture and aquipmant wre purchased during the wear for cash 2. Recall from Chapter 11 that Ihe company originally Issued 25,930 common shares for $25,930, of which /50 shares were repurchased from the lawyer for $500 coOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31, 2019 Sales revenue $462,500 Cost gnods sold 231,250 Gross profit 231,250 Qperating expenses Salaries and wages expense $92,500 3.900 Depreclation expense Other operating expenses 35,987 132.387 98,863 Income from operations Other expenses Interest expense 413 Income before income tax 98,450 Income tax expense 19,690 $78,760 Net income COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 2019 Assets Current assets Cash $86,219 Accounts receivable 3.250 Inventory 17,897 6,300 $113,666 Prepaid expenses Praperty, plant, and equipment Furniture and fixtures $12,500 Accumulated depreclation-furniture and fixtures (1,250) 11,250 4,200 Computer equipment Accurmulated depreciation-cormputer equipment (600) 3,600 Kitchen equipment 29,000 Accumulated depreciation--kitchen equi pment (2,050) 26,950 11,800 Total assets $155,466 Liabilities and Stockholders' Equity Current liahilities Accounts payable $5,848 Income tax payable 19.690 Dlvidends payable 700 Salaries and wages payable 2,250 Interest payable 188 Note payablecurrent portion 4,000 $32,676 Long-term liabilities Note payable-long-term portlon 6,000 Jotal liablitles 38.6/6 Stockholders equity Paid-in capital $ 14,000 Preferred stock, 2,800 shares issued and outstancing Common stock, 25,930 shares Issued, 25,180 shares outstanding 25,930 39,930 Retained eamings 77,360 117.290 Total paid-in capital and retained eamings Less: Treasury stock (750 common shares) 500 Total stockholders equity 116,790 $155,466 Total liabilities and stockholders' equity serniannual 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 stockbolders on ctober 31 to be naid on herember 1 4. Prepaid expenses relate only to operating expenses. (a) Your answer is correct. Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2019, using the indirect method. (Sh parenthesis e.g. (15,000). If answer is 0, please enter 0. Do not leave any fields blank.) COOKIE & COFFEE CREATIONS INC. Cash Flow Statement Year Ended October 31, 2019 Cash Flows from Operating Activities $78,760 TNet Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $3,900 188 Increase in Interest Payable 3,250) Increase in Accounts Receivable Increase in Inventory 17.897) Prepaid Expenses TIncrease 6,300) Accounts Payable 15,848 Increase Increase in Income Taxes Payable T19,690 2,250 increase in Salaries and Wages Payable 4,429 83,189 TNet Cash Provided by Operating Activities Cash Flows from Investing Activities 12,500 Purchase of Furniture TPurchase of Computer Equipment (4,200) F17,000) TPurchase of Kitchen Equipment 33,700 Net Cash used by Investing Activities Cash Flows from Financing Activities S 2,000 Principal Repayment of Notes Payable T14,000 Issuance of Preferred Stock 25.930 TIssuance of Common Stock [Repurchase of Stock (500) Payment of Dividends 700) 36.730 Net Cash Provided by Financing Activities 86,219 INet Increase in Cash TC TCash, November 1, 2018 $86,219 Cash, October 31, 2019 TNoncash Investing and Financing Activities $$12,000 TIssuance of Note Payable to Purchase Kitchen Equipment (b) Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2019, using the direct method. parenthesis e.g. (15,000). If answer is 0, please enter 0. Do not leave any fields blank.) COOKIE & COFFEE CREATIONS INC. Cash Flow Statement