Suppose the income statement for Goggle Company reports $127 of net income, after deducting depreciation of $27. The company bought equipment costing $100 and obtained a long-term bank loan for $102.

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). (Select "NE" if there is no effect. Enter all amounts as positive values.)

2.

Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

6.

Are the cash flows typical of a start-up, healthy, or troubled company?

A. Start-Up Company

B. Healthy Company

C. Troubled Company

HBO GO. It's HBO 10.00 points Suppose the income statement for Goggle Company reports $127 of net income, after deducting depreciation of $27. The company bought equipment costing $100 and obtained a long-term bank loan for $102. Required 1. Calculate the change in each balance sheet account and indicate whether each account relates to if there operating, investing, andlor financing activities (+for increase and - for decrease). (Select "NE is no effect. Enter all amounts as positive values.) Previous Year Current Year Change Type Cash Accounts Receivable Inventory 296 191 143 640 (64) 1,206 43 $ 83 300 540 (37) Accumulated Depreciation Equipment Total Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Eamings $929 S 18 S 453 18 440 18 567 1,206 929 S 17