3 Prior Year Book MONTGOMERY INC. Comparative Balance Sheets December 31 Current Year Assets Cash $ 30,400 Accounts receivable, net 10, ese 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 $ 23,9ee Salaries payable see Total current liabilities 24,400 Equity Common stock, no par value 110, eee Retained earnings 23,550 Total liabilities and equity $157,950 $ 30,550 12,150 70, 150 112,850 41,500 (15,300) $139, ese Print Torences $ 25,400 600 26, eee 1ee, eee 13,850 $139,85e 2 Homework Saved Help Save & Exit Check my 3 MONTGOMERY INC Income Statement For Current Year Ended December 31 Sales $ 45,575 Cost of goods sold (18,950) Gross profit 26,625 Operating expenses Depreciation expense $7.200 other expenses Total operating expense 12,250 Income before taxes 13.875 Income tax expense 3,175 Net income $ 10,500 Doo rence Additional Information on Current-Year Transactions a. No dividends are declared or paid b. Issuec additional stock for $10,000 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.) 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 not income to not cash provided by operations Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Cash balance at beginning of year Cash balance at end of year