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  3. suppose the income statement for goggle company re

Suppose the income statement for Goggle Company reports $139 of net income, after deducting depreciation...

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Accounting

Suppose the income statement for Goggle Company reports $139 of net income, after deducting depreciation of $24. The company bought equipment costing $115 and obtained a long-term bank loan for $124. The companys comparative balance sheet, at December 31, is presented here.

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?

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.)

Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.

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