Continuing Cookie Chronicle 12 (Part Level Submission) Natalie has prepared the

ID: 2418585 • Letter: C

Question

Continuing Cookie Chronicle 12 (Part Level Submission) Natalie has prepared the balance sheet and income statement of Cookie & Coffee Creations Inc. and would like you to prepare the cash flow statement. The comparative balance sheet of Cookie & Coffee Creations Inc. at October 31, 2018 for the years 2018 and 2017 and the income statement for the year ended October 31, 2018, are presented below. COOKIE&COFFEE; CREATIONS INC. Balance Sheet October 31 Assets Cash Accounts receivable Inventory Prepaid expenses Equipment Accumulated dection-equipment (25,200) (9,100) Total assets 2018 2017 $22,324 3,250 7,897 5,800 102,000 $5,550 2,710 7,450 6,050 75,500 $116,071 $88,160 COOKIE&COFFEE; CREATIONS INC. Balance Sheet October 31 018 Accounts payable Income taxes payable Dividends payable Salaries and wages payable Interest payable Note payable Preferred stock, no par, $6 cumulative, 3,000 and 2,800 shares issued, respectively Common stock, 1 par-25, 180 shares issued and outstanding $1,150 $2,450 9,251 7,200 27,000 27,000 7,250 1,280 0 0 15,000 14,000 25,180 25,180 188 10,000

Explanation / Answer

Net Income $37,002

Add:Depreciation expense 17,600

Loss on sale of plant assets 2,500

Increase in income tax payable 2,051

Salary & wages paayble 5,970

Interest payable 188

Prepaid expense 250

less A/c payable decrease (300)

A/c receivable increase (540)

Inventory (447) $26,272

Net cash provided by operating activities $63,274

Cash flow from investing activities:

Cash from sale $500

Purchase (4,000)

Equipment (27,000)

Net cash used by investing activities (30,500)

Cash flow from financing activities

Cash from issue 1,000

Cash from notes payable 10,000

Dividends paid (27,000)

Net cash used by finanicng activities (16,000)

Net cash provided $16,774

Add: opening cash 5,550

Cash at end $22,324