29 Prior Year 3.68 points Skipped MONTGOMERY INC. Comparative Balance Sheets December 31 Current Year Assets Cash $ 58,200 Accounts receivable, net 18,300 Inventory 164,100 Total current assets 240,600 Equipment 90,900 Accum. depreciation Equipment (41,000) Total assets $290,500 Liabilities and Equity Accounts payable $ 43,600 Salaries payable 900 Total current liabilities 44,500 Equity Common stock, no par value 202,500 Retained earnings 43,500 Total liabilities and equity $290,500 $ 58,100 22,300 128,800 209,200 76,200 (28,100) $257,300 eBook $ 46,600 1,100 47,700 Ask 185, 700 23,900 $257,300 Print References MONTGOMERY INC. Income Statement For Current Year Ended December 31 Sales $ 83,500 Cost of goods sold (34,600) Gross profit 48,900 Operating expenses Depreciation expense $12,900 Other expenses 10,300 Total operating expense 23, 200 Income before taxes 25,700 Income tax expense 6,100 Net income $ 19,600 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $16,800 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. (Amounts to be deducted should be indicated by a minus sign.) MONTGOMERY, INC. Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current operating assets and liabilities es $ 0 Cash flows from investing activities $ 0 Cash flows from fnancing activities 0 $ $ 0 $ 0 Cash balance at beginning of year Cash balance at end of year 29 of 29 Next