Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me with preparing a statement of cash flows Suppose the income statement for Goggle Company reports $70 of net income, after deducting depreciation

please help me with preparing a statement of cash flows
image text in transcribed
image text in transcribed

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 long-term bank loan for $60. The company's comparative balance sheet, at December 31. indicates the following: Required: 1. Calculate the change in each balance sheet account, and indicate whether each account relates to operating, investing, and/or financing activities. (Decreases should be indicated with minus sign.) Previous Year Current Year Change Type Cash $ 35 5 205 170 Accounts Receivable 76 175 100 Operating Inventory 200 135 (125) Operating) Equipment 500 560 60 Investing Accumulated Depreciation (45) (80) (35) Operating Total $ 825 $ 995 Wages Payable $ 10 $ 50 40 Operating Long-Term Debt 445 505 60 Financing Contributed Capital 10 10 OfFinancing Retained Earnings 360 430 70 Operating Total S 625 $ 995 Check my work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones of Managerial Accounting

Authors: Mowen, Hansen, Heitger

3rd Edition

324660138, 978-0324660135

More Books

Students also viewed these Accounting questions

Question

=+to record the dishonored note receivable?

Answered: 1 week ago