E$12-7($Algo$)$ Preparing and Evaluating a Simple Statement of Cash Flows $($Indirect Method$)[$LO $12-1,$ LO $12-2,$ LO $12-5]$

Suppose the income statement for Goggle Company reports $$127$ of net income, after deducting depreciation of $$27.$ The company bought equipment costing $$100$ and obtained a long$-$term bank loan for $$102.$ 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?