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.) Previous Year $ 35 Current Year Change Type Cash $ 205 Accounts Receivable 75 175 260 135 500 Inventory Equipment Accumulated Depreciation Total 560 (45) (80) $ 825 $ 995 $ 10 $ 50 445 Wages Payable Long-Term Debt Contributed Capital Retained Earnings 505 10 10 360 430 Total $ 825 $ 995 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 Adjustments to reconcile net income to cash provided by operating activities Changes in current assets and current liabilities Cash flows used in investing activities 0 Cash flows provided by financing activities 0 Net channe in rach 0 Net change in cash Cash, beginning of year Cash, end of year S 0