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 cash flow statement. The income statement and balance sheet appear below. Note that the company started operations on November 1, 2018, so all opening balances are zero.

**Additional Information:**

1. The company bought kitchen equipment (a commercial oven) for $29,000 on November 1, 2018, and signed a $12,000 note payable to help pay for it. The terms provide for semiannual fixed principal payments of $2,000 on May 1 and November 1 of each year, plus interest of 5%. All other furniture, fixtures, and equipment were purchased during the year for cash.

2. The company originally issued 25,930 common shares for $25,930, of which 750 shares were repurchased from the lawyer for $500.

3. The company declared a semiannual dividend to the preferred stockholders on April 30, and the dividend was paid on June 1. The second semiannual dividend was declared to the preferred stockholders on October 31, to be paid on December 1.

4. Prepaid expenses relate only to operating expenses.

**COOKIE & COFFEE CREATIONS INC.**

**Income Statement**
*Year Ended October 31, 2019*

- Sales revenue: $462,500
- Cost of goods sold: $231,250
- Gross profit: $231,250

*Operating Expenses:*
- Salaries and wages expense: $92,500
- Depreciation expense: $3,900
- Other operating expenses: $35,987
- Total Operating Expenses: $132,387

- Income from operations: $98,863

*Other Expenses:*
- Interest expense: $413

- Income before income tax: $98,450
- Income tax expense: $19,690

- Net income: $78,760

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**Balance Sheet**
*October 31, 2019*

*Assets*

**Current Assets:**
- Cash: $86,219
- Accounts receivable: $3,250
- Inventory: $17,897
- Prepaid expenses: $6,300
- Total Current Assets: $113,666

**Property, Plant, and Equipment:**
- Furniture and fixtures: $12,500
- Accumulated depreciation furniture and fixtures: $(1,250)
- Net: $11,250
- Computer equipment: $4,200
- Accumulated depreciation computer equipment: $(600)
- Net: $3,600
- Kitchen equipment: $29,000
- Accumulated depreciation kitchen equipment: $(2,050)
- Net: $26,950

- Total Property, Plant, and Equipment: $41,800

- Total Assets: $155,466

*Liabilities and Stockholders' Equity*

**Current Liabilities:**
- Accounts payable: $5,848
- Income tax payable: $19,690
- Dividends payable: $700
- Salaries and wages payable: $2,250
- Interest payable: $188
- Note payable current portion: $4,000
- Total Current Liabilities: $32,676

**Long-term Liabilities:**
- Note payable long-term portion: $6,000
- Total Liabilities: $38,676

**Stockholders' Equity:**
- Paid-in capital:
- Preferred stock, 2,800 shares issued and outstanding: $14,000
- Common stock, 25,930 shares issued, 25,180 shares outstanding: $25,930
- Total Paid-in Capital: $39,930
- Retained earnings: $77,360
- Total Paid-in Capital and Retained Earnings: $117,290

- Less: Treasury stock (750 common shares): $(500)

- Total Stockholders' Equity: $116,790

- Total Liabilities and Stockholders' Equity: $155,466

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Prepare a cash flow statement using the information provided above.