MPB has been in business for many months already. From 1/1/2011 to 1/31/2011, the following occurred: MPB purchased $10,000 in bakery inventory and...

1. MPB has been in business for many months already. From 1/1/2011 to 1/31/2011, the following occurred:

1. MPB purchased $10,000 in bakery inventory and paid cash to the suppliers. 
2. MPB sold $15,000 in cupcakes to customers on account (cash payment not expected for a few months); cost of suppliers used is $5,000
3. MPB recorded bakery equipment depreciation expense of $1,000

2. CMB has been in business for many months already. From 1/1-1/31/2011, the following occurred:

1. CMB purchased $10,000 in bakery inventory on account to suppliers.
2. CMB sold $15,000 in cupcakes to customers for cash; cost of suppliers used is $5,000
3. CMB recorded bakery equipment depreciation expense of $1,000

Required:

a.      a. For each event, provide the required journal entries to record the event. 

b.      b. Prepare the income statements for MPB and CMB from 1/1/2011 to 1/31/2011.

c.       c. Using the indirect method to calculate the cash flows from operations starting from net incomes for MPB and CMB.