Suppose the income statement for Goggle Company reports $95 of net income, after deducting depreciation of $35. The company bought equipment costing $60 and obtained a long-term bank loan for $70. The companys comparative balance sheet, at December 31, is presented under Tab 1 below.

Required:

1. 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. 2. Prepare a statement of cash flows using the indirect method.
3. 6. Are the cash flows typical of a start-up, healthy, or troubled company?

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 6 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). (Select "NE" if there is no effect. Enter all amounts as positive values.) Previous Year Current Year 35 240 75 175 260 135 500 580 - Change Type 205 100 Operating - Operating 80 investing Operating (45) (80) Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total S 825 $ 1.030 S 10 $ 50 + 445 515 + 40 Operating 70 Financing Financing 95 NE 10 360 10 455 + S 825 $ 1.030 Required 1 Required 2 >