Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pls explanations Suppose the income statement for Goggle Company reports $155 of net income, after deducting depreciation of $20. The company bought equipment costing $135

pls explanations

image text in transcribedimage text in transcribedimage text in transcribed

Suppose the income statement for Goggle Company reports $155 of net income, after deducting depreciation of $20. The company bought equipment costing $135 and obtained a long-term bank loan for $140. 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 Previous Year Current Year 50 355 90 205 Accounts Receivable 150 335 575 710 (50) 1,370 s (30) 1.020 25 Inventory Equipment Accumulated Depreciation-Equipment Total Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total S S S 80 460 600 25 25 510 1,020 665 1,370 $ S 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: 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: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 6 Are the cash flows typical of a start-up, healthy, or troubled company? Start-Up Company Healthy Company Troubled Company

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_2

Step: 3

blur-text-image_3

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

Documentation Improvement Methods The New Accounting Manual

Authors: Athar Murtuza

2nd Edition

0471379387, 978-0471379386

More Books

Students also viewed these Accounting questions