This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
CHAPTER 17
Cookie Creations
(Note: This is a continuation of the Cookie Creations from Chapters 1 through 16.)
CC17 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.
Additional information:
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 revenue
$462,500
Cost of goods sold
231,250
Gross profit
231,250
Operating expenses
Salaries and wages expense
$92,500
Depreciation expense
9,850
COOKIE & COFFEE CREATIONS INC.
Balance Sheet
October 31, 2018
Assets
Current assets
Cash
$32,219
Accounts receivable
3,250
Inventory
17,897
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable
$ 5,848
Income taxes payable
18,500
Dividends payable
700
Salaries and wages payable
2,250
Stockholders’ equity
Paid-in capital
Preferred stock, 2,800 shares issued and
outstanding
$14,000
Common stock, 25,930 shares issued, 25,180
outstanding
25,930
39,930
Retained earnings
72,600
Instructions
(a) Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year
ended October 31, 2018, using the indirect method.
Trusted by Thousands of
Students
Here are what students say about us.
Resources
Company
Copyright ©2022 All rights reserved. | CoursePaper is not sponsored or endorsed by any college or university.