I can't find the errors in my work can you help? Suppose the income statement for Goggle Company reports $115 of net income, after deducting depreciation of $30. The company bought equipment costing $85 and obtained a long-term bank loan for $90.

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). (Select "NE" if there is no effect. Enter all amounts as positive values.)

	Previous Year	Current Year	Change		Type
Cash	$40	$275	+	235	Operating
Accounts Receivable	80	185	+	105	Operating
Inventory	285	140	-	145	Operating
Equipment	525	610	+	85	Investing
Accumulated Depreciation - Equipment	(40)	(70)	-	30	Operating
Total	$890	$1,140
Salaries and Wages Payable	$15	$60	+	45	Operating
Notes Payable (long-term)	450	540	+	90	Financing
Common Stock	15	15	-		Financing
Retained Earnings	410	525	+	115	Operating
Total	$890	$1,140

A.

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

GOGGLE COMPANY
Statement of Cash Flows
For the Year Ended December 31
Cash Flows from Operating Activities:
Net Income		$115
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation	$30
Changes in Current Assets and Current Liabilities
Increase in Accounts Receivable	(105)
Decrease in Inventory	145
Increase in Salaries and Wages Payable	45
		230
Cash Flows from Investing Activities:
Equipment Purchased	(85)
		(85)
Cash Flows from Financing Activities:
	90
	0
Net Cash Used in Financing Activities		90
Net Decrease in Cash		(40)
Increase in Accounts Receivable		235
		$195