Homework Help is Here – Start Your Trial Now!
Business
Accounting
Natalie has prepared the balance sheet and income statement of Cookie & Coffee Creations Inc. and would like you to prepare the statement of cash flows. The comparative balance sheet of Cookie & Coffee Creations Inc. at October 31 for the years 2026 and 2025, and the income st COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, Assets Accounts receivable Inventory Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity 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-25,930 shares issued and outstanding Additional paid-in capital-treasury stock Retained earnings Less: Treasury stock Total liabilities and stockholders' equity 2026 $29,074 3,250 7,697 5,800 102,000 (25,200) $122,821 2026 $1,150 9,251 27,000 7,250 188 10,000 15,000 25,930 250 26,802 0 $122,621 2025 $11.550 2,710 7,450 6,050 75.500 (9,100) $94.160 2025 $2,450 7,200 27,000 1,290 0 0 14,000 25,930 0 16.800 (500) $94.160

Natalie has prepared the balance sheet and income statement of Cookie & Coffee Creations Inc. and would like you to prepare the statement of cash flows. The comparative balance sheet of Cookie & Coffee Creations Inc. at October 31 for the years 2026 and 2025, and the income st COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, Assets Accounts receivable Inventory Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity 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-25,930 shares issued and outstanding Additional paid-in capital-treasury stock Retained earnings Less: Treasury stock Total liabilities and stockholders' equity 2026 $29,074 3,250 7,697 5,800 102,000 (25,200) $122,821 2026 $1,150 9,251 27,000 7,250 188 10,000 15,000 25,930 250 26,802 0 $122,621 2025 $11.550 2,710 7,450 6,050 75.500 (9,100) $94.160 2025 $2,450 7,200 27,000 1,290 0 0 14,000 25,930 0 16.800 (500) $94.160

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31,2026, using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g.(15,000).)  (Also the answers I need will have a ? and a blank)

 

Here is what I have so far for the statement of cash flows:

 

Coffee & Coffee Creations Inc.

Statement of Cash Flows (Indirect Method)

For the Year Ended October 31, 2026

 

Cash Flows from Operating Activities 

Net Income                                                                       $37,002

Adjustments to reconcile net income to

Net Cash Provided by Operating Activities

Depreciation Expense                                                      $17,600

Loss on Disposal of Plant Assets                                         2,500

Increase in Accounts Receivable                                          -540

Increase in Inventory                                                             -447

Decrease in Prepaid Expenses                                              250

Decrease in Accounts Payable                                          - 1,300

Increase in Salaries and Wages Payable                            5,970

Increase in Interest Payable                                                   188

Increase in Income Taxes Payable                                      2,051

                                                                                                                 26,272

Net Cash Provided by Operating Activities                                              63,274

 

Cash Flows from Investing Activities

Purchase of Equipment                                                       ?

Sales of Equipment                                                            500

Net Cash Used by Investing Activities                                        -18,500

 

Cash Flows from Financing Activities

Issuance of Preferred Stock                                          1,000

                      ?                                                                  ?

Payment of Cash Dividends                                              ?

                    ?                                                                    ?           

Net Cash Used by Financing Acitvities                                                       ?                                     

Net Increase in Cash                                                                                 ?

Cash, November 1                                                                                     ?                       

Cash, October 31                                                                                       ?                       

 

Noncash Investing and Financing Activities

                   ?                                                                                               ?

                                                       

 

Sales Cost of goods sold Gross profit Operating expenses Salaries and wages expense Depreciation expense Other operating expenses Income from operations Other expenses COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31, 2026 Interest expense Loss on disposal of plant assets Income before income tax Income tax expense Net income Additional information: 1. 2. 3. 5. 6. $147,979 17,600 48,186 $413 2,500 $485,625 222,694 262,931 213,765 49,166 2,913 46,253 9,251 $37,002 Equipment (cost $4,500 and book value $3,000) was disposed of at the beginning of the year for $500 cash and replaced with new equipment purchased for $4,000 cash. Additional equipment was bought for $14,000 on November 1, 2025. A $2,000 cash down-payment was made and a $12,000 note payable was signed. The terms provide for equal semi-annual installment payments of $2,000 on May 1 and November 1 of each year, plus interest of 5% on the outstanding principal balance. Other equipment was bought for $13,000 cash. Dividends were declared on the preferred and common stock on October 15, 2026, to be paid on November 15, 2026. The prior year declared dividend was paid in November, 2025. Accounts payable relate only to merchandise creditors. Prepaid expenses relate only to other operating expenses.
Transcribed Image Text:Sales Cost of goods sold Gross profit Operating expenses Salaries and wages expense Depreciation expense Other operating expenses Income from operations Other expenses COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31, 2026 Interest expense Loss on disposal of plant assets Income before income tax Income tax expense Net income Additional information: 1. 2. 3. 5. 6. $147,979 17,600 48,186 $413 2,500 $485,625 222,694 262,931 213,765 49,166 2,913 46,253 9,251 $37,002 Equipment (cost $4,500 and book value $3,000) was disposed of at the beginning of the year for $500 cash and replaced with new equipment purchased for $4,000 cash. Additional equipment was bought for $14,000 on November 1, 2025. A $2,000 cash down-payment was made and a $12,000 note payable was signed. The terms provide for equal semi-annual installment payments of $2,000 on May 1 and November 1 of each year, plus interest of 5% on the outstanding principal balance. Other equipment was bought for $13,000 cash. Dividends were declared on the preferred and common stock on October 15, 2026, to be paid on November 15, 2026. The prior year declared dividend was paid in November, 2025. Accounts payable relate only to merchandise creditors. Prepaid expenses relate only to other operating expenses.
Natalie has prepared the balance sheet and income statement of Cookie & Coffee Creations Inc. and would like you to prepare the statement of cash flows. The comparative balance sheet of Cookie & Coffee Creations Inc. at October 31 for the years 2026 and 2025, and the income statement for the year ended October 31, 2026, are presented below Assets Cash Accounts receivable Inventory Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable Income taxes payable COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 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-25,930 shares issued and outstanding Additional paid-in capital-treasury stock Retained earnings Less: Treasury stack Total liabilities and stockholders' equity 2026 $29,074 3,250 7,897 5,800 102,000 (25,200) $122,821 2026 $1,150 9,251 27,000 7,250 188 10,000 15,000 25,930 250 26,802 0 $122,821 2025 $11,550 2,710 7,450 6,050 75.500 (9,100) $94,160 2025 $2,450 7,200 27,000 1,280 0 0 14,000 25,930 0 16,800 (500) $94,160
Transcribed Image Text:Natalie has prepared the balance sheet and income statement of Cookie & Coffee Creations Inc. and would like you to prepare the statement of cash flows. The comparative balance sheet of Cookie & Coffee Creations Inc. at October 31 for the years 2026 and 2025, and the income statement for the year ended October 31, 2026, are presented below Assets Cash Accounts receivable Inventory Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable Income taxes payable COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 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-25,930 shares issued and outstanding Additional paid-in capital-treasury stock Retained earnings Less: Treasury stack Total liabilities and stockholders' equity 2026 $29,074 3,250 7,897 5,800 102,000 (25,200) $122,821 2026 $1,150 9,251 27,000 7,250 188 10,000 15,000 25,930 250 26,802 0 $122,821 2025 $11,550 2,710 7,450 6,050 75.500 (9,100) $94,160 2025 $2,450 7,200 27,000 1,280 0 0 14,000 25,930 0 16,800 (500) $94,160
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Presentation of Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS