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 $37,002Adjustments to reconcile net income toNet Cash Provided by Operating ActivitiesDepreciation Expense $17,600Loss on Disposal of Plant Assets 2,500Increase in Accounts Receivable -540Increase in Inventory -447Decrease in Prepaid Expenses 250Decrease in Accounts Payable - 1,300Increase in Salaries and Wages Payable 5,970Increase in Interest Payable 188Increase in Income Taxes Payable 2,051 26,272Net Cash Provided by Operating Activities 63,274 Cash Flows from Investing ActivitiesPurchase of Equipment ?Sales of Equipment 500Net Cash Used by Investing Activities -18,500 Cash Flows from Financing ActivitiesIssuance 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 ? ? SalesCost of goods soldGross profitOperating expensesSalaries and wages expenseDepreciation expenseOther operating expensesIncome from operationsOther expensesCOOKIE & COFFEE CREATIONS INC.Income StatementYear Ended October 31, 2026Interest expenseLoss on disposal of plant assetsIncome before income taxIncome tax expenseNet incomeAdditional information:1.2.3.5.6.$147,97917,60048,186$4132,500$485,625222,694262,931213,76549,1662,91346,2539,251$37,002Equipment (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 belowAssetsCashAccounts receivableInventoryPrepaid expensesEquipmentAccumulated depreciation-equipmentTotal assetsLiabilities and Stockholders' EquityAccounts payableIncome taxes payableCOOKIE & COFFEE CREATIONS INC.Balance SheetOctober 31,Dividends payableSalaries and wages payableInterest payableNote payablePreferred stock, no par, $6 cumulative, 3,000 and 2,800 shares issued, respectivelyCommon stock, $1 par-25,930 shares issued and outstandingAdditional paid-in capital-treasury stockRetained earningsLess: Treasury stackTotal liabilities and stockholders' equity2026$29,0743,2507,8975,800102,000(25,200)$122,8212026$1,1509,25127,0007,25018810,00015,00025,93025026,8020$122,8212025$11,5502,7107,4506,05075.500(9,100)$94,1602025$2,4507,20027,0001,2800014,00025,930016,800(500)$94,160

The cash flow statement assesses a corporation's ability to handle its cash balance, or how…

Answered: Natalie has prepared the balance sheet…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 2TP: Use a spreadsheet and the following financial information from Mineola Companys financial statements...

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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.

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

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