Suppose the income statement for Goggle Company reports $175 of net income, after deducting depreciation of $15. The company bought equipment costing $160 and obtained a long-term bank loan for $164. The companys 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?

Calculate the change in each balance sheet account and indicate whether each account relates to opera financing activities (+ for increase and - for decrease). (Select "NE" if there is no effect. Enter all amou values.) Previous Year Current Year Change Cash 55 394 Accounts Receivable 95 215 Inventory 360 155 Equipment 600 760 Accumulated Depreciation-Equipment (25) (40) $ $ 1,085 1,484 Total Salaries and Wages Payable 30 90 Notes Payable (long-term) 465 629 Common Stock 30 30 Retained Earnings 560 735 1,085 1,484 Total EAA