Questions
Natalie has prepared the balance sheet and income statement of Cookie & Coffee Creations Inc. and...

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, 2020 for the years 2020 and 2019 and the income statement for the year ended October 31, 2020, are presented below.

Additional information:

1.   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.

2.   Additional equipment was bought for $14,000 on November 1, 2019. 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.

3.   Other equipment was bought for $13,000 cash.

4.   Dividends were declared on the preferred and common stock on October 15, 2020, to be paid on November 15, 2018.

5.   Accounts payable relate only to merchandise creditors.

6.   Prepaid expenses relate only to other operating expenses.

Instructions:

(a) Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2020, using the indirect method.

*(b)            Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2020, using the direct method.

COOKIE & COFFEE CREATIONS INC.

Balance Sheet

October 31,

Assets

2020

2019

Cash

$ 22,324

$5,550

Accounts receivable

3,250

2,710

Inventory

7,897

7,450

Prepaid expenses

5,800

6,050

Equipment

102,000

75,500

Accumulated depreciation—

equipment

(25,200)

(9,100)

Total assets

$116,071

$88,160

COOKIE & COFFEE CREATIONS INC.

Balance Sheet

October 31,

Liabilities and Stockholders’ Equity

2020

2019

Accounts payable

$ 1,150

$ 2,450

Income taxes payable

9,251

7,200

Dividends payable

27,000

27,000

Salaries and wages payable

7,250

1,280

Interest payable

188

0

Note payable

10,000

0

Preferred stock, no par, $6 cumulative,

3,000 and 2,800 shares issued,

respectively

15,000

14,000

Common stock, $1 par—25,180 shares

issued and outstanding

25,180

25,180

Additional paid-in capital—treasury stock

250

250

Retained earnings

20,802

10,800

Total liabilities and stockholders’ equity

$116,071

$88,160

COOKIE & COFFEE CREATIONS INC.

Income Statement

Year Ended October 31, 2020

Sales

$485,625

Cost of goods sold

222,694

Gross profit

262,931

Operating expenses

Salaries and wages expense

$147,979

Depreciation expense

17,600

Other operating expenses

    48,186

   213,765

Income from operations

49,166

Other expenses

Interest expense

$    413

Loss on disposal of plant

assets

     2,500

     2,913

Income before income tax

46,253

Income tax expense

     9,251

Net income

$ 37,002

In: Accounting

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The day trader wants to estimate the actual proportion of investors who would buy shares in United Airlines.

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Describe also how the relative output of financial services versus manufacturing in the UK changes with Brexit. Explain your answer.

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A: That refuses to enforce the "yellow-dog", anti-union employment contract.

B: Fixing wage, hour and working conditions for most federal supply contracts in excess of $10,000.

C: On competition law passed by Congress in 1890. It prohibits certain business activities that reduce competition in the marketplace, and requires the United States federal government to investigate and pursue trusts, companies, and organizations suspected of being in violation.

D: Prohibiting featherbedding of the stand-by or make work types in the radio industry.

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A: It contains an exception for strikes caused by the failure or refusal of an employer to conform to the provisions of an agreement or contract between employer and employee, or a law pertaining to hours, wages or other conditions of work.

B: It cuts federal expenditures.

C: It limits the use of limited food-stamp funds for those most in need.

D: It avoids providing "one-sided support" in labor strikes.

3. A "double-breasted" company:

A: May or may not constitute a single bargaining unit using the usual "community of interest" test.

B: Is one which is regulated by the Interstate Commerce Commission in as much it regulates the hours of service of interstate passenger and freight motor vehicle operators.

C: Is one which has a clear separation between a disestablished company-dominated union its "successor" which is required by the National Labor Relations Board.

D: Is one in which there is an indicia of interrelated operations, common management, common ownership, and centralized control of labor relations.

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A: Supremacy Clause in the second paragraph of Article VI of the Constitution.

B: Labor-Management Reporting and Disclosure Act of 1959.

C: Secondary boycott provisions contained in Section 303 of the Act.

D: National Labor Relations Act’s rules relating to the right of employees to organize and bargain collectively; or prohibited by provisions of the National Labor relations Act that govern unfair labor practices.

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