Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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.) Change Type Cash Accounts Receivable Inventory Equipment Accumulated Depreciation Total Wages Payable Long-Term Debt Contributed Capital Retained Earnings Total Previous Current Year Year $ 35 S 205 75 175 260 135 500 560 (45) (80) $ 825 S 995 10 50 445 505 10 10 360 430 $ 825 S 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 0 Cash flows used in investing activities 0 Cash flows provided by financing activities 0 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 0 Cash flows used in investing activities 0 Cash flows provided by financing activities Net change in cash Cash, beginning of year Cash, end of year $ 0 6. Are the cash flows typical of a start-up, a healthy, or a troubled company? O Healthy O Troubled

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Audit The Process Based QMS

Authors: Dennis R. Arter, Charles A. Cianfrani, Jack West

1st Edition

ISBN: 0873895770, 978-0873895774

More Books

Students also viewed these Accounting questions

Question

2. What are five kinds of nonproductive roles in teams? (LO 8-1)

Answered: 1 week ago

Question

2. Identify conflict triggers in yourself and others

Answered: 1 week ago