2017 MONTGOMERY INC. Comparative Balance Sheets December 31, 2018 and 2017 2018 Assets Cash $ 30,400 Accounts receivable, net 10,050 Inventory 90,100 Total current assets 130,550 Equipment 49,900 Accum. depreciation--Equipment (22,500) Total assets $157,950 Liabilities and Equity Accounts payable $ 23,900 Salaries payable 500 Total current liabilities 24,400 Equity Common stock, no par value 110,000 Retained earnings 23,550 Total liabilities and equity $157,950 $ 30,550 12,150 70, 150 112,850 41,500 (15,300) $139,050 $ 25,400 600 26,000 100,000 13,050 $ 139,050 MONTGOMERY INC. Income Statement For Year Ended December 31, 2018 Sales $ 45,575 Cost of goods sold (18,950) Gross profit 26,625 Operating expenses Depreciation expense $ 7,200 Other expenses 5,550 Total operating expense 12,750 Income before taxes 13,875 Income tax expense Net income $ 10,500 3,375