Lab 11, Question # 3

Suppose the income statement for Goggle Company reports $70 of net income, after deducting depreciation of $35. The company bought equipment costing $60 and obtained a longterm bank loon for $60. The company's comparative balance sheet, at December 31, indicates the following: 1. Calculate the change in each balance sheet occount, and indicate whether each account relates to operating. investing, and/or Required: financing activities, (Decreases should be indieated with minus sign.) 2. Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with minus sign.) 3. This part of the question is not part of your Connect assignment. 4. This part of the question is not part of your Connect assignment. 5. This part of the question is not part of your Connect assignment. 6. Are the cash flows typical of a start-up, a healthy, or a troubled company? Troubled Healthy Suppose the income statement for Goggle Company reports $70 of net income, after deducting depreciation of $35. The company bought equipment costing $60 and obtained a longterm bank loon for $60. The company's comparative balance sheet, at December 31, indicates the following: 1. Calculate the change in each balance sheet occount, and indicate whether each account relates to operating. investing, and/or Required: financing activities, (Decreases should be indieated with minus sign.) 2. Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with minus sign.) 3. This part of the question is not part of your Connect assignment. 4. This part of the question is not part of your Connect assignment. 5. This part of the question is not part of your Connect assignment. 6. Are the cash flows typical of a start-up, a healthy, or a troubled company? Troubled Healthy