1) Suppose the income statement for Goggle Company reports $115 of net income, after deducting depreciation of $30. The company bought equipment costing $85 and obtained a long-term bank loan for $90.

	Previous Year	Current Year	Change		Type
Cash	$40	$275	+	235	Operating
Accounts Receivable	80	185	+	105	Operating
Inventory	285	140	-	145	Operating
Equipment	525	610	+	85	Investing
Accumulated Depreciation - Equipment	(40)	(70)	-	30	Operating
Total	$890	$1,140
Salaries and Wages Payable	$15	$60	+	45	Operating
Notes Payable (long-term)	450	540	+	90	Financing
Common Stock	15	15	-		Financing
Retained Earnings	410	525	+	115	Operating
Total	$890	$1,140

Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

GOGGLE COMPANY
Statement of Cash Flows
For the Year Ended December 31
Cash Flows from Operating Activities:
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Changes in Current Assets and Current Liabilities
		0
Cash Flows from Investing Activities:
		0
Cash Flows from Financing Activities:
		0
		$0