Question

Continuing Cookie Chronicle 13 The comparative balance sheet of Cookie& Coffee Creations Inc. at October 31, 2018 for the years 2018 and 2017, and the income statements for the years ended October 31, 201 and 2018, are presented below COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31 $22,324 $5,550 3,250 2,710 7,897 7,450 5,800 6,050 102,000 75,500 Cash Accounts receivable Inveetory Prepaid expenses Equipment Accumulated depreciation Total assets Liabilitles and Stockholders' Equity Accounts payable 25,00) (9,100) 116,071 88,160 1150 $2,450 7,200 27,000 27,000 250 ,280 9.251 7, Income taxes payable Dividends payable Salaries and wages payable Interest payable Note payable-current portion Note payable-long-term portion 188 4,000 6,000 AD 1/0/2019 948 PM

Answer 1

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 financing activities                         (16,000)

Net cash provided                                                          $16,774

Add: opening cash                                                             5,550

Cash at end                                                                     $22,324