11 At December 31 Assets Cash MONTGOMERY INCORPORATED Comparative Balance Sheets Accounts receivable, net 00:21:28 Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings Current Year Prior Year $ 38,200 10,800 96,800 145,800 53,600 (24,200) $ 38,700 13,400 77,500 129,600 45,800 (16,900) $ 175,200 $ 158,500 $ 25,700 400 26,100 129,300 19,800 $ 28,100 500 28,600 119,000 10,900 $ 158,500 Total liabilities and equity $ 175,200 MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income $ 40,300 (16,700) 23,600 5,000 7,300 11,300 2,400 $ 8,900 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $10,300 cash. c. Purchased equipment for cash; no equipment was sold. 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign.