Natalie has prepared the balance sheet and income statement of Cookie \& Coffec Creations inc for the first year of operations, but does not understand how to prepare the cash flow statement The income statement and batance sheet appear below. Recall that the company started operations on November 1.2020, 10 all of the opening balances are zero. Additionst information: 1. The company bought kitchen equipment (a commerelat oven) for $29,000 on Novernber 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, plos interest of 5\%. Ali other fumiture, fixture, and equipment were purchased during the year for cash. 2. Recalifrom Chapter 11 that the company originally issued 25,930 common shares for 525,930, of which 750 shares were repurchased from the lawyer for $500. COUKAE \& COFFEE CREAIIONS HINC. Income Statement Year Ended October 31, 2021 \begin{tabular}{lr} Sales revenue & $462,500 \\ Cost of goods sold & 231,250 \\ \hline Gross profit & 231,250 \end{tabular} Operating expenses \begin{tabular}{lrr} Salaries and wages expense & $92,500 & \\ Depreciation expense & 3,900 & \\ Other operating expenses & 35,987 & 132,387 \\ \hline Income from operations & & \\ Other expenses & & 48,863 \\ Interest expense & 98,450 \\ Income beforeincome tax & 19,690 \\ Income tax expense & $78,760 \\ Net income & \end{tabular} Question 4 of 5 incometrom operations Other expenses \begin{tabular}{lr} Interest expense & 413 \\ \hline Income before income tax \\ Income tax expense & 98,450 \\ Net income: & 19,690 \\ \hline \end{tabular} COOKIE \& COFFEE CREATIONS INC. Balance Sheet October 31, 2021 Assets Current assets Cash Accounts recelvable Inventory Prepaidexpenses Property, plant, and equipment Furniture and fixtures Liabilities and Stockholders' Equity Current liabilities Accounts payable Income tax payable Dividends payable Salaries and wages payable $5.84819.6907002.250 Question 4 of 5 4,36/10 Salaries and wages payable Interest payable Note payable-current portion Long-term liabilities Note payabie-long term portion Total Liabilities 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. Retained earninss Total paldin capital and retained earnings Less: Treasury stock (750 common shared) Total stockholders' equity Totar liabilities and stochholders' equity 5155,460116.790 3. Recall from Chapter 11 that the company declared 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 poid on December 1. 4. Prepaid expenses relate only to operating expenses. (3) Prepare a statement of cash flows for Cookje & Coffee Creations Inc, for the year ended October 31, 2021, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g-15,000 or in parenthesis e. I. (15.000). If answer is 0 , please enter 0 . Do not leave any fieids blank.) 9 Adjustments to reconcile net incometo Whtcath Provided by Operating Activities: Puribase of congiater Equipmint. Ca dillinsifrom foumcing fictivities Whisiato or Cammon Stou Pir plarchase uisticich Payment ok Dividende Cank November 1 200C ) Noncish liwesting and Firancing Retivites : timuance of Note Payable to Purchase Kichen Eulu grient : Prepare a statement of cash flowis for Cookke \& Coffee Creations inc for the year ended October 31, 2021, using the direct. method. (Show amounts that decrease cosh flow with either a - sign es, 15,000 or in parenthesis es. (15,000). If aniswer is o, piease enter 0 . Do not leave any fields blank.] \& Course Final Comprehensive Problem Question 4 of 5> 4.36/10 Question 4 of 5 4.36/10: 5 Attempts: 0 of 3 used Submit Anwwer
