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. The companys comparative balance sheet, at December 31, is presented under Tab 1 below.

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, investing, and/or financing activities (+ for increase and for decrease). (Select "NE" if there is no effect. Enter all amounts as positive values.)

	Previous Year	Current Year	Change		Type
Cash	43	296
Accounts Receivable	83	191
Inventory	300	143
Equipment	540	640
Accumulated DepreciationEquipment	(37)	(64)
Total	$929	$1,206
Salaries and Wages Payable	$18	$66
Notes Payable (long-term)	453	555
Common Stock	18	18
Retained Earnings	440	567
Total	$929	$1,206

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: