Use the following financial statements and additional information to?

(1) Prepare a statement of cash flows for the year ended December 31, 2019, using the indirect method?

(2) Analyze and briefly discuss the statement prepared in part 1 with special attention to operating activities and to the company?s cash level.

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MONTGOMERY INC. Comparative Balance Sheets December 31, 2019 and 2018 2019 2018 Assets $ 30,400 $ 30,550 Cash.... Accounts receivable, net.. 10,050 12,150 90,100 70,150 Inventory..... Total current assets 130,550 112,850 Equipment..... 49,900 41,500 Accum. depreciation-Equipment. (22,500) (15,300) Total assets.. $139,050 $157,950 Liabilities and Equity Accounts payable.... Salaries payable... Total current liabilities. $ 25,400 $ 23,900 500 600 24,400 26,000 Equity Common stock, no par value.... 110,000 100,000 Retained eamings..... 23,550 $157,950 13,050 Total liabilities and equity.... $139.050 MONTGOMERY INC. Income Statement For Year Ended December 31, 2019 Sales .... $45,575 Cost of goods sold (18,950) Gross profit.... Operating expenses 26,625 Depreciation expense $7,200 Other expenses 5,550 Total operating expense.. 12,750 Income before taxes... 13,875 Income tax expense. 3,375 Net income... $10,500