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 $143 of net income, after deducting depreciation of $23. The company bought equipment costing $120 and obtained a long-term bank loan for $128. 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. Required 1 Required 2 Required 6 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.) Change Type Cash 47 Accounts Receivable Inventory Equipment Accumulated Depreciation Equipment Total Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Previous Year Current Year 334 87 199 320 147 560 680 (33) (56) 981 $ 1,304 22 $ 457 585 2222 480 623 $ 981 $ 1,304 74 Total Required 1 Required 2 > 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 Cash Flows from Investing Activities: Cash Flows from Financing Activities: Required 1 Required 2 Required 6 Are the cash flows typical of a start-up, healthy, or troubled company? O Start-Up Company Healthy Company Troubled Company