need helo preparing a statement of cash flows using the direct method

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 we s were repurchased from the lawyer for $500 COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31, 2021 $92,500 3.900 35,987 Sales revenue Cost of goods sold Gross profit Operating expenses Salaries and wages expense Depreciation expense Other operating expenses Income from operations Other expenses Interest expense Income before income tax Income tax expense Net income Current assets Cash Accounts receivable $462,500 231,250 231,250 132,387 98,863 413 98,450 19,690 $711,760 COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 2021 Assets $86,219 3,250 COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 2021 Assets Current assets Cash Accounts receivable Inventory Prepaid expenses Property, plant, and equipment Furniture and fixtures Accumulated depreciation-furniture and fixtures Computer equipment Accumulated depreciation-computer equipment Kitchen equipment Accumulated depreciation-kitchen equipment Total assets Current liabilities $12,500 Accounts payable Income tax payable Dividends payable Salaries and wages payable Interest payable Note payable-current portion Long-term liabilities Note payable-long-term portion Total liabilities Stockholders' equity Paid-in capital Preferred stock, 2.800 shares issued and outstanding Common stock, 25,930 shares issued, 25,180 shares outstanding Retained earnings (1,250) 4,200 (600) 29,000 (2,050) Liabilities and Stockholders' Equity $14,000 25,930 $86,219 3,250 17,897 6,300 11,250 3,600 26,950 $5,848 19,690 700 2,250 188 4,000 39,930 77,360 $113,666 41,800 $155,466 $32,676 6,000 38.676 4,000 $14,000 25,930 $32.676 6,000 38,676 Note payable current portion Long-term liabilities Note payable-long-term portion Total liabilities Stockholders' equity Paid-in capital Preferred stock, 2,800 shares issued and outstanding Common stock, 25,930 shares issued, 25,180 shares outstanding 39.930 Retained earnings 77,360 Total paid-in capital and retained earnings 117,290 Less: Treasury stock (750 common shares) 500 Total stockholders' equity 116,790 $155,466 Total liabilities and stockholders' equity 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 paid on December 1. 4 Prepaid expenses relate only to operating expenses. (a) Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2021, using the indirect method. (Show amounts that decrease cash flow with either a-sign eg-15,000 or in parenthesis eg. (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, 2021 Cash Flows from Operating Activities 78.760 Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Increase in Accounts Receivable Increase in Inventory Increase in Prepaid Expenses Increase in Accounts Payable Increase in Salaries and Wages Payable Increase in Interest Payable Increase in Income Taxes Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Kitchen Equipment Purchase of Forniture Purchase of Computer Equipment Net Cash used by Investing Activities Cash Flows from Financing Activities 3,900 (3250) (17,897) (6.300) 5.848 2.250 188 19,690 (17,000)) (12,500) (4.2001 4429 83,109 (33.700) Purchase of Kitchen Equipment Purchase of Furniture Purchase of Computer Equipment Net Cash used by Investing Activities Cash Flows from Financing Activities Principal Repayment of Notes Payable Issuance of Common Stock Repurchase of Stock Payment of Dividends Issuance of Preferred Stock Net Cash Provided by Financing Activities Net Increase in Cash Cash, November 1, 2020 Cash October 31, 2021 Noncash Investing and Financing Activities V Issuance of Note Payable to Purchase Kitchen Equipment V (17,000) (12.500) (4,200) (2,000) 25,930 (500) (700) 14.000 $ (33,700) 36.730 86.219 0 86.219 12.000 Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2021, using the direct method. (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis eg (15,000). If answer is 0, please enter O. Do not leave any fields blank) COOKIE & COFFEE CREATIONS INC. Cash Flow Statement 1000 Save for Later > > 000 > 10000 > > Attempts: 0 of 3 used Submit