Suppose the income statement for Goggle Company reports $171 of net income, after deducting depreciation of $16. The company bought equipment costing $155 and obtained a long-term bank loan for $156. 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.

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	54	383
Accounts Receivable	94	213
Inventory	355	154
Equipment	595	750
Accumulated DepreciationEquipment	(26)	(42)
Total	$1,072	$1,458
Salaries and Wages Payable	$29	$88
Notes Payable (long-term)	464	620
Common Stock	29	29
Retained Earnings	550	721
Total	$1,072	$1,458