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Suppose the income statement for Goggle Company reports $147 of net income, after deducting depreciation of $22. The company bought equipment costing $125 and obtained
Suppose the income statement for Goggle Company reports $147 of net income, after deducting depreciation of $22. The company bought equipment costing $125 and obtained a long-term bank loan for $132. 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 Accounts Receivable Inventory Equipment Accumulated DepreciationEquipment Total Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Previous Year Current Year 48 341 88 201 325 148 565 690 (32) (54) 994 $ 1,326 $ 23 $ 76 458 590 23 23 490 994 $ 637 1,326
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