Please assist. Purchase of Equipment for -99700 was also wrong. Issue of Common Stock for +25430 was also wrong.

Cookie Creations 17 (Part Level Submission) 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 statement of cash flows. The income statement and balance sheet appear below. Recall that the company started operations on November 1, 2017, so all of the opening balances are zero. The income statement and balance sheet appear below. Recall that the company started operations on November 1, 2017, so all of the opening balances are zero. Additional information: 1. Recall from Chapter 15 that the company bought kitchen equipment (a commercial oven) for $17,0000 on November 1, 2017, 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 14 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, 2018 Sales $462,500 Cost of goods sold 231,250 Gross profit 231,250 Operating expenses Salaries and wages expense $92,500 Depreciation expense 9,850 Other operating expenses 35,987 138,337 Income from operations 92,913 Other expenses Interest expense 413 Income before income tax 92,500 Income tax expense 18,500 Net income $74,000 COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 2018 Assets Current Assets Cash $32,219 Accounts receivable 3,250 Inventory 17,897 Prepaid Rent Property, Plant, and Equipment 6,300 $59,666 Equipment 99,700 Accumulated depreciation-equipment (9,850) 89,850 Total assets $149,516 Liabilities and Stockholders' Equity Current Liabilities Accounts payable $5,848 Income tax payable 18,500 Dividends payable 700 Salaries and wane 2,250 Interest payable 188 Note payable-current portion 4000 $31,486 Long-term Liabilities Note payable-long-term portion 6,000 Total liabilities 37,486 Stockholders' Equity Paid-in capital Preferred stock, 2,800 shares issued and outstanding $14,000 25,930 Common stock, 25,930 shares issued, 25,180 outstanding 39,930 Retained earnings Total paid-in capital and retained earnings 72,600 112,530 (500) Less: Treasury stock-common (750 shares), at cost 112,030 Total stockholders' equity Total liabilities and stockholders' equity $149,516 Year Ended October 31, 2018 Cash Flows from Operating Activities Net Income 74000 Adjustment to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 9850 Increase in Accounts Receivable -3250 Increase in Inventory -17897 Increase in Prepaid Rent -6300 Increase in Accounts Payable 5848 Increase in Income Taxes Payable 18500 Increase in Salaries and Wages Payable 2250 |Increase in Interest Payable 188 9189 Net Cash Provided by Operating Activities 83189 Cash Flows from Investing Activities Purchase of Equipment 99700 Net Cash Used by Investing Activities 99700 Cash Flows from Financing Activities Issue of Common Stock -25430 Issue of Preferred Stock 14000 Principal Repayment of Notes Payable 400 Payment of Dividends -700 Increase in Interest Payable 4000 Net Cash Provided by Financing Activities -7730 Net Increase in Cash 32219 Cash, November 1, 2017 0 32219 Cash, October 31, 2018 Noncash Investing and Financing Activities Gain on Disposal of Plant Assets