4 10 points MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash Accounts receivable, net $ 57,800 14,300 Inventory 128,200 Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable 200,300 71,000 (32,100) $ 239,200 $ 34,200 600 34,800 172,900 31,500 $ 239,200 $ 57,900 17,600 101,700 177,200 60,200 (22,200) $ 215,200 $ 36,900 800 37,700 160,100 17,400 $ 215,200 Total current liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity 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 $ 61,800 (25,600) 36,200 7,700 9,900 18,600 4,500 $ 14,100 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $12,800 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.)