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Suppose the income statement for Goggle Company reports $ 1 7 1 of net income, after deducting depreciation of $ 1 6 . The company
Suppose the income statement for Goggle Company reports $ of net income, after deducting depreciation of $ The company bought equipment costing $ and obtained a longterm bank loan for $ The company's comparative balance sheet, at December is presented here.
Required:
Calculate the change in each balance sheet account and indicate whether each account relates to operating, investing, andor financing activities for increase and for decrease
Prepare a statement of cash flows using the indirect method.
Are the cash flows typical of a startup healthy, or troubled company?
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Prepare a statement of cash flows using the indirect method. Amounts to be deducted should be indicated with a minus sign.
tableGOGGLE COMPANYStatement of Cash FlowsFor the Year Ended December Cash Flows from Operating Activities:,Net Income,tableAdjustments to Reconcile Net Income to Net CashProvided by Operating Activities:DepreciationChanges in Current Assets and Current Liabilities,Increase in Accounts Receivable,,Decrease in Inventory,,
tableGOGGLE COMPANYStatement of Cash FlowsFor the Year Ended December Cash Flows from Operating Activities:Net Income,tableAdjustments to Reconcile Net Income to Net CashProvided by Operating Activities:DepreciationChanges in Current Assets and Current LiabilitiesIncrease in Accounts Receivable,,Decrease in InventoryIncrease in Salaries and Wages PayableNet Cash Provided by Operating Activities,,Cash Flows from Investing Activities:Equipment Purchased,Net Cash Provided by Investing Activities,,Cash Flows from Financing Activities:,Obtained Bank Loan,Net Cash Provided by Financing Activities,Net Increase in Cash,,Cash Beginning of Current Year,,Cash End of Current Year,,
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