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 quantities as positive values.)

	Last year	current year	Change		Type
Money	$49	$348
accounts receivable	89	203
Inventory	330	149
Equipment	570	700
Accumulated Depreciation - Equipment	(31)	(52)
Total	$1,007	$1,348
Wages and salaries payable	$24	$78
Notes payable (long term)	459	595
Common actions	24	24
Retained earnings	500	651
Total	$1,007	$1,348

2.	Prepare a statement of cash flows using the indirect method. (The amounts to be deducted must be indicated with a minus sign).

GLASSES COMPANY
Statement of cash flows
For the year ended December 31
Cash flows from operating activities:
Adjustments to Reconcile Net Income with Net Cash Provided by Operating Activities:
Changes in Current Assets and Current Liabilities
Cash flows from investing activities:
Cash Flows from Financing Activities:

6.	Are the cash flows typical of a start-up, healthy, or struggling business?

Answer rating: 100% (QA)

Solution Here are the calculations of the changes in each balance sheet account and the classificati... View the full answer