E12-7 Preparing and Evaluating a Slmple Statement of Cash Flows (IndIrect Method) [LO 12-1, LO 12-2,LO 12-5]Suppose the income statement for Goggle Company reports $131 of net income, after deducting depreciation of $26. The companybought equipment costing $105 and obtained a long-term bank loan for $106. The company's comparative balance sheet, atDecember 31, is presented here.Requlred:1. Calculate the change in each balance sheet account and indicate whether each account relates to operating, investing, and/orfinancing 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 1Required 2Required 6Calculate the change in each balance sheet account and indicate whether each account relates to operating, investing, and/orfinancing activities (+ for increase and - for decrease). (Select "NE" if there is no effect. Enter all amounts as positivevalues.)Previous Year Current YearChangeТурeCash44303250 Cash100 Operating161 Operating105 Investing26 OperatingAccounts Receivable84193+Inventory305144Equipment545650Accumulated Depreciation-Equipment(36)(62)Total9421,22849 Operating106 FinancingSalaries and Wages Payable1968Notes Payable (long-term)454560O Financing131 OperatingCommon Stock1919NERetained Earnings450581+Total9421,228< Required 1Required 2 >++++ my wE12-7 Preparlng and Evaluating a Slimple Statement of Cash Flows (Indirect Method) [LO 12-1, LO12-2, LO 12-5]Suppose the income statement for Goggle Company reports $131 of net income, after deducting depreciation of $26. Thecompany bought equipment costing $105 and obtained a long-term bank loan for $106. The company's comparative balancesheet, at December 31, is presented here.Requlred:1. Calculate the change in each balance sheet account and indicate whether each account relates to operating, investing, and.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 1Required 2Required 6Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minussign.)GOGGLE COMPANYStatement of Cash FlowsFor the Year Ended December 31Cash Flows from Operating Activities:Net Income131Adjustments to Reconcile Net Income to Net CashProvided by Operating Activities:Depreciation26Changes in Current Assets and Current LiabilitiesIncrease in Acounts Receivable(100)Decrease in Inventory161Increase in Salaries and Wages Payable49Net Cash Provided by Operating Activities258Cash Flows from Investing Activities:Équipment Purchased(105)(105)Cash Flows from Financing Activities:Obtained Bank Loan106Net Cash Provided by Financing Activities106Net Increase in Cash250Cash, Beginning of Current Year44ICash. End of Current Year303

Name: E12-7 Preparing and Evaluating a Slmple Statement of Cash Flows (IndI
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Description: E12-7 Preparing and Evaluating a Slmple Statement of Cash Flows (IndIrect Method) [LO 12-1, LO 12-2,LO 12-5]Suppose the income statement for Goggle Company reports $131 of net income, after deducting depreciation of $26. The companybought equipment

The Cash Flow Statement shows the actual cash position of the firm. It includes operating,…

Business

Accounting

Suppose the income statement for Goggle Company reports $131 of net income, after deducting depreciation of $26. The company bought equipment costing $105 and obtained a long-term bank loan for $106. The company's comparative balance sheet, at December 31, is presented here. Requlred: 1. Calculate the change in each balance sheet account and indicate whether each account relates to operating. investing. andior 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?

Suppose the income statement for Goggle Company reports $131 of net income, after deducting depreciation of $26. The company bought equipment costing $105 and obtained a long-term bank loan for $106. The company's comparative balance sheet, at December 31, is presented here. Requlred: 1. Calculate the change in each balance sheet account and indicate whether each account relates to operating. investing. andior 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Following are the financial statements of ABC Ltd. for 2010 Requirement: Calculate and interpret following ratios: 1. Current ratio 2. Liquid ratio 3. Receivables turnover ratio and collection period 4. Inventory turnover and holding period 5. Fixed assets turnover
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Subject :- Account
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