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Suppose the income statement for Goggle Company reports $119 of net income, after deducting depreciation of $29. The company bought equipment costing $90 and obtained

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Suppose the income statement for Goggle Company reports $119 of net income, after deducting depreciation of $29. The company bought equipment costing $90 and obtained a long-term bank loan for $94. The company's comparative balance sheet, at Decembe 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? Calculate the change in each balance sheet account and indicate whether each account relates to operating, inves financing activities (+ for increase and - for decrease). (Select "NE" if there is no effect. Enter all amounts as pos Previous Year 41 Current Year 282 Change Type + 241 Cash 81 187 + 141 149 290 530 620 Operating Operating Investing Operating + 90 (39) + Cash Accounts Receivable Inventory Equipment Accumulated Depreciation- Equipment Total Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total 29 $ 903 $ (68) 1,162 62 545 16 $ + 451 + 46 Operating 94 Financing Financing 119 Operating 16 NE 16 420 903 + > 539 1,162 $ 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 119 $ 29 Changes in Current Assets and Current Liabilities Increase in Accounts Receivable Decrease in Inventory Increase in Salaries and Wages Payable s 148 Net Cash Provided by Operating Activities Cash Flows from Investing Activities Equipment Purchased Cash Flows from Investing Activities: Equipment Purchased 0 Net Cash Provided by Investing Activities Cash Flows from Financing Activities 0 $ 0

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