100 points 2017 MONTGOMERY INC. Comparative Balance Sheets December 31, 2018 and 2017 2018 Assets Cash $ 56,900 Accounts receivable, net 14,100 Inventory 126,400 Total current assets 197,400 Equipment 70,000 Accum. depreciation Equipment (31,700) Total assets $ 235,700 Liabilities and Equity Accounts payable $ 33,700 Salaries payable 600 Total current liabilities 34,300 Equity Common stock, no par value 170,000 Retained earnings 31,400 Total liabilities and equity $ 235,700 $ 57,100 17,300 100,000 174,400 59, 200 (21,800) $ 211,800 $ 36,200 800 37,000 157,400 17,400 $ 211,800 MONTGOMERY INC. Income Statement For Year Ended December 31, 2018 Sales $ 61,500 Cost of goods sold (25,500) Gross profit 36,000 Operating expenses Depreciation expense $ 9,900 Other expenses 7,600 Total operating expense 17,500 Income before taxes 18,500 Income tax expense 4,500 Net income $ 14,000 Additional Information a. No dividends are declared or paid in 2018. b. Issued additional stock for $12,600 cash in 2018. c. Purchased equipment for cash in 2018; no equipment was sold in 2018. Answer is not complete. MONTGOMERY, INC. Statement of Cash Flows (Indirect Method) For Year Ended December 31, 2018 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Changes in current operating assets and liabilities Decrease in accounts receivable Increase in inventory Decrease in accounts payable Decrease in salaries payable Depreciation expense OOOO Net cash used in operating activities Cash flows from investing activities Cash paid for equipment Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Net cash provided by financing activities Net decrease in cash Cash balance at beginning of year Cash balancp at end of year