Suppose the income statement for Goggle Company reports $70 of net income, after deducting depreciation of $35. The company bought equipment costing $60 and obtained a long-term bank loan for $60. The company's comparative balance sheet, at December 31, indicates the following: Required: 1. Calculate the change in each balance sheet account, and indicate whether each account relates to operating, investing, and/or financing activities. (Decreases should be indicated with minus sign.) Current Year Previous Year 35 75 Cash $ Accounts Receivable 205 175 | 135 Change Type 170 Cash 100 Operating (125) Operating 50 Investing (35) Operating Inventory 260 560 Equipment Accumulated Depreciation 500 (45) 825 (80)| 995 Total $ 10 50 445 505 Wages Payable Long-Term Debt Contributed Capital Retained Earnings 40 Operating 60 Financing 0 70 10 360 10 430 995 Total | $ 825 $ 2. Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with minus sign.) GOGGLE COMPANY Statement of Cash Flows For the Year Ended December 31 Cash flows provided by operating activities: Net income Adjustments to reconcile net income to cash provided by operating activities $ 170 Changes in current assets and current liabilities 170 Cash flows used in investing activities Cash flows provided by financing activities Net change in cash Cash, beginning of year Cash, end of year