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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 company's comparative balance sheet, at December 31, is presented under Tab 1 below. Required: 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. Prepare a statement of cash flows using the indirect method. 6. Are the cash flows typical of a start-up, healthy, or troubled company? Answer is not complete. 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 Change Type Cash 35 240 205 Accounts Receivable 75 175 100 Operating O Inventory 260 135 (125) Operating O Equipment 500 560 Accumulated Depreciation- (45) (80) 60 Investing (35) Operating O Equipment Total $ 825 Salaries and Wages Payable $ 10 $ SS $ 1,030 50 40 Operating Notes Payable (long-term) 445 515 70 Common Stock 10 10 Retained Earnings 360 455 Financing 0Financing O 95 000 Total $ 825 $ 1,030 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 6 Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indica sign.) GOGGLE COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation Changes in Current Assets and Current Liabilities: Increase in Accounts Receivable Decrease in Inventory Increase in Salaries and Wages Payable Cash Flows from Investing Activities: Cash Flows from Financing Activities: Obtained Bank Loan Net Increase in Cash Cash, Beginning of Current Year Cash, End of Current Year 95 0 $ 35 (100) 125 40 70 195 0 70 205 35 $ 240

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