$ 55,600 12,500 112,100 180, 200 62, 100 (28,100) $ 214,200 $ 55,900 15,400 89,000 160,300 52,700 (19,400) $193,600 Cash Accounts receivable, net Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity $ 29,900 500 30,400 $ 32,200 700 32,900 156,300 27,500 $ 214,200 145,500 15,200 $193,600 MONTGOMERY INC. Income Statement For Current Year Ended December 31 Sales $ 54,000 Cost of goods sold (22,400) Gross profit 31,600 Operating expenses Depreciation expense $ 8,700 Other expenses 6,700 Total operating expense 15,400 Income before taxes 16,200 Income tax expense 3,900 Net income $ 12,300 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $10,800 cash. c. Purchased equipment for cash; no equipment was sold. 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 $ 0 Cash flows from investing activities $ 0 Cash flows from financing activities $ 0 $ 0 Cash balance at beginning of year Cash balance at end of year $ 0