Question: 12 Problems Seved Help Suppose the income statement for Goggle Company reports $139 of net income, after deducting depreciation of $24. The company bought equipment
12 Problems Seved Help 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 company's comparative balance sheet, at December 31, is presented here. 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? 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 46 327 Accounts Receivable 86 197 Inventory 315 146 Equipment 670 Accumulated Depreciation Equipment (34) (58) Total $ 968 $ 1.282 Salaries and Wages Payable $ 21 $ 72 Notes Payable long-term) 456 580 Common Stock 21 21 Retained Earnings 470 609 Total $ 968 $ 1,282 555
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