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Continuing Cookie Chronicle

(Note: This is a continuation of the Cookie Chronicle from Chapters 1 through 11.)

CCC12 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.

Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2018, using the indirect method.

Cash Flows from Operating Activities

Net Income $37002

Net Cash Provided by Operating Activates

Depreciation Expense $17600

Increase in Accounts Receivable $-540

Increase in Inventory $-447

Decrease in Prepaid Expenses $250

Decrease in Accounts Payable $-1300

Increase in Income Taxes Payable $2051

Increase in Salaries and Wages Payable $5970

Increase in Interest Payable $188

Loss on Disposal of Plant Assets $2500

$26272

Net Cash Provided by Operating Activates $63274

Cash Flows from Investing Activates

Purchase of Equipment $-19000

Sales of Equipment $500

Net Cash used by Investing Activities $-18,500

Cash Flows from Financing Activates

Issuance of Preferred Stock $1000

Payment of Cash Dividends $-27000

Principal Repayment of Notes Payable $2000

Net cash used by Financing Activates $-28000

Net Increase in Cash $16774

Cash, as of Nov 1 $5550

Cash, as of Oct 31 $22324

Issuance of note payable to purchase equipment $12000

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