The comparative trial balance of Cookie & Coffee Creations Inc. at October 31 for the years 2026 and 2025 is presented on the Trial Balance Tab.
Additional information:
1 Equipment was disposed of at the beginning of the year for $500 cash (Loss already posted in Trial Balance). New equipment purchased for $4,000 cash.
2 Additional equipment was bought for $14,000 on November 1, 2025 ($2,000 cash down-payment 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. Hint: Only 1 note payment is paid by October 31, 2026.
3 Other equipment was bought for $13,000 cash.
4 Dividends of $27,000 were declared on the preferred and common stock on October 15, 2026, to be paid on November 15, 2026.
5 Accounts payable relate only to merchandise creditors.
6 Prepaid expenses relate only to other operating expenses.
Instructions:
(a) Prepare an income statement for Cookie & Coffee Creations Inc. for the year ended October 31, 2026.
(b) Prepare a balance sheet for Cookie & Coffee Creations Inc. as of October 31, 2026.
(c) Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2026, using the indirect method.
Use the attached Excel file to complete the assignment.
Instructions Accounting for Managers - 5323 Financial Statement Project The comparative trial balance of Cookie & Coffee Creations Inc. at October 31 for the years 2026 and 2025 is presented on the Trial Balance Tab. Additional information: 1Equipment was disposed of at the beginning of the year for $500 cash (Loss already posted in Trial Balance). New equipment purchased for $4,000 cash. 2Additional equipment was bought for $14,000 on November 1, 2025 ($2,000 cash down-payment 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. Hint: Only 1 note payment is paid by October 31, 2026. 3Other equipment was bought for $13,000 cash. 4Dividends of $27,000 were declared on the preferred and common stock on October 15, 2026, to be paid on November 15, 2026. 5Accounts payable relate only to merchandise creditors. 6Prepaid expenses relate only to other operating expenses. Instructions: (a)Prepare an income statement for Cookie & Coffee Creations Inc. for the year ended October 31, 2026. (b)Prepare a balance sheet for Cookie & Coffee Creations Inc. as of October 31, 2026. (c)Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2026, using the indirect method. Trial Balance COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31 20262025 (For Cash Flow Purposes) DebitCredit Accounts payable1,1502,450 Accounts receivable3,2502,710 Cash29,07411,550 Dividends payable27,00027,000 Equipment102,00075,500 Accumulated depreciation— equipment25,2009,100 Income taxes payable9,2517,200 Inventory7,8977,450 Prepaid expenses5,8006,050 Salaries and wages payable7,2501,280 Interest payable1880 Note payable10,0000 Preferred stock, no par, $6 cumulative,3,000 and 2,800 shares issued,respectively15,00014,000 Common stock, $1 par—25,930 shares issued and outstanding25,93025,930 Additional paid-in capital—treasury stock2500 Retained earnings10,20016,800 Treasury stock0500 Sales$485,625 Cost of goods sold222,694 Depreciation expense17,600 Income tax expense9,251 Interest expense413 Salaries and wages expense147,979 Other operating expenses48,186 Loss on disposal of plant assets2,500 Total Trial Balance$606,844$606,844$103,760$103,760 $0$0 Income Statement COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31, 2026 Gross profit0 Operating expenses 0 Income from operations0 Other expenses 0 Income before income tax0 Net income$0 Balance Sheet COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, Assets20262025Change Total assets$0$0$0 Liabilities and Stockholders’ Equity Total CurrentLiabilities000 Total Liabilities000 Total stockholders' equity00 Total liabilities and stockholders’ equity$0$0 $0$0 Cash Flow COOKIE & COFFEE CREATIONS INC. Statement of Cash Flows for the Year Ended October 31, 2026 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: - 0 Net cash provided by operating activites- 0 Cash flows from investing activities Net cash used by investing activities0 Cash flows from financing activities Net cash used by financing activities0 Net increase in cash0 Cash, November 1, 2025 Cash, October 31, 20260 If the ending cash balance is correct, Cell F37 will Display Correct. Noncash investing and financing activities