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.) 2. Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with minus sign.) 6. Are the cash flows typical of a start-up, a healthy, or a troubled company? Healthy Troubled Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement are provided below, along with additional information. Additional notes: a. Bought new hockey equipment for cash, $500. b. Borrowed $1,000 cash from the bank during the year. c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash. 1. Prepare the statement of cash flows for the year ended December 31 using the direct method. (Amounts to be deducted should be indicated by a minus sign.)