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E 1 2 - 7 ( Algo ) Preparing and Evaluating a Simple Statement of Cash Flows ( Indirect Method ) [ LO 1 2
EAlgo Preparing and Evaluating a Simple Statement of Cash Flows Indirect MethodLO LO LO
Suppose the income statement for Goggle Company reports $ of net income, after deducting depreciation of $ The company bought equipment costing $ and obtained a longterm bank loan for $ The companys comparative balance sheet, at December is presented here.
Required:
Calculate the change in each balance sheet account and indicate whether each account relates to operating, investing, andor financing activities for increase and for decrease
Prepare a statement of cash flows using the indirect method.
Are the cash flows typical of a startup healthy, or troubled company?
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