HW 12&5 Question 9

Suppose the income statement for Goggle Company reports $139 of net income, after deducting depreciation of $24. The company bought equipment costing $115 and obtained a long-term bank loan for $124. The company's comparative balance sheet, at December 31, is presented here. Recommendation: Click on the Hint link and watch the guided example for this question. It provides a helpful review of the process for preparing a statement of cash flows. 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.) 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 Typo Previous Year Current Year 46 327 86 197 315 146 555 670 (58) $ 968 $ 1,282 $ 21 $ 72 456 580 21 21 470 609 $ 968 $ 1,282 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation ---Equipment Total Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total (34) Required 2 > Prepare a statement of cash flows using the Indirect method. (Amounts to be deducted 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 Cash Flows from Investing Activities: Cash Flows from Financing Activities: