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Please review my answers and help to with corrections. Thank you Suppose the income statement for Goggle Company reports $95 of net income, after deducting
Please review my answers and help to with corrections. Thank you
Suppose the income statement for Goggle Company reports $95 of net income, after deducting depreciation of $35. The company bought equipment costing $60 and obtained a long-term bank loan for $70. 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 205 100 Operating 125 Operating + 60 Investing 35 Operating + Cash Accounts Receivable Inventory Equipment Accumulated Depreciation Equipment Total Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Previous Year Current Year 35 240 75 175 260 135 500 560 (45) (80) $ 825 $ 1,030 $ 10 $ 50 445 515 10 10 360 455 $ 825 $ 1,030 $ + + 40 Operating 70 Financing 0 Financing 95 Operating NE + Required 1 Required 2 Required 6 Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) GOGGLE COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation $ 95 35 125 Changes in Current Assets and Current Liabilities Decrease in Inventory Increase in Salaries and Wages Payable Increase in Accounts Receivable 40 (100) Net Cash Provided by Operating Activities 195 Cash Flows from Investing Activities: Equipment Purchased (60) (60) Net Cash Used in Investing Activities Cash Flows from Financing Activities: obtained Bank Loan 70 70 205 Net Cash Provided by Financing Activities Net Increase in Cash Cash, Beginning of Current Year Cash, End of Current Year 35 $ 240
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