COSTOWN OF ACCOUNT SOSIDAD Chapter 12 Exercises Suppose the income statement for Goggle Company reports $155 of net income, after deducting depreciation of $20. The company bought equipment costing $135 and obtained a long-term bank loan for $140. The company's comparative balance sheet, at December 31, is presented here. 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) 2. Prepare a statement of cash flows using the Indirect method. 6. Are the cash flows typical of a start-up, healthy, or troubled company? Complete this question by entering your answers in the tabs below. Check my work mode : This shows what is correct or incorrect for the work you ha $ 155 Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation S Increase in Accounts Receivable Changes in Current Assets and Current Liabilities 20 (155) 185 Decrease in Inventory Increase in Salaries and Wages Payable 55 260 Cash Flows from Investing Activities: Equipment Purchased (135) (135) Cash Flows from Financing Activities: 140 140 305 50 $ 355 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation Increase in Accounts Receivable $ S $ (15 MA ALLIA Cash, Beginning of Current Year 18. Cash, End of Current Year 5: Decrease in Accounts Receivable Decrease in Inventory Equipment Purchased (135) Cash Flows from Financing Activities: Prepare a statement of cash flows using the indirect m sign.) GOGGLE COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation $ Increase in Accounts Receivable $ (15 ALL!!!.. Decrease in Salaries and Wages Payable 1 Depreciation Equipment Purchased 5 Increase in Accounts Receivable Increase in Inventory Equipment Purchased (135) Cash Flows from Financing Activities: Prepare a statement of cash flows using sign.) GOGGLE COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation $ Increase in Accounts Receivable $ (1 L!! Increase in Accounts Receivable Increase in Inventory 1 Increase in Salaries and Wages Payable Obtained Bank Loan Paid Bank Loan Equipment Purchased (135 Cash Flows from Financing Activities: Answer is not complete. Complete this question by entering your answers in the tabs below. 1:03 Required 1 Required 2 Required 6 50 Calculate the change in each balance sheet account and indicate whether each account relates to operating, Investing financing activities (+ for increase and - for decrease). (Select "NE" if there is no effect. Enter all amounts as positive Previous Current Year Year Change Type Cash 355 305 Accounts Receivable 90 205 115 Operating Inventory 335 150 185 Operating Equipment 575 710 135 Investing Accumulated Depreciation- Equipment (30) (50) 20 Operating Total $ 1,020 $ 1,370 Salaries and Wages Payable $ 25 $ 80 55 Operating Notes Payable (long-term) 460 600 140 Financing Common Stock 25 25 Retained Earnings 510 665 Operating Total 1,020 $ 1,370 155 Required 1 Required 2
