AND PROBLEM #2,

E12-7 Preparing and Evaluating a Simple Statement of Cash Flows (Indirect Method) [LO 12-1, LO 12-2, LO 12-5] Suppose the income statement for Goggle Company reports $163 of net income, after deducting $148 depreciation of $18. The company bought equipment costing $145 and obtained a long-term bank loan for Required 1. Calculate the change in each balance sheet account and indicate whether each account relates to operating, investing, and/or financing activities +for increase and -for decrease). (Select "NE" if there is no effect. Enter all amounts as positive values.) Previous Year Current Year Change Type 317 Cash Cash Accounts Receivable Inventory Equipment Accumulated Depreciation - Equipment 369 209117 Operating 152 730 (46) 52 $ 92 345 585 (28) 193 Operating 145 Investing ( 18Operating 1,046 $ 1,414 Total Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings 8457 Operating 148 Financing 0 Financing 693 163 Operating 27 $ 462 27 530 1,046 $ 610 27NE Total 1,414