6 Mc MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Inventory Total current assets Equipment Accumulated 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 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 $ 61,500 (25,500) 36,000 7,600 9,900 18,500 4,500 $ 14,000 Current Year $ 56,900 $57,100 14,100 17,300 126,400 100,000 197,400 174,400 70,000 59,200 (31,700) (21,800) $ 235,700 $ 33,700 600 34,300 Prior Year 170,000 31,400 $ 235,700 $ 211,800 $36,200 800 37,000 157,400 17,400 $ 211,800 Additional Information on Current.Voar Trencactionc

\begin{tabular}{|c|c|c|} \hline MONTGOMERYINCOComparativeBalanAtDecember31 & RATEDSheetsCurrentYear & Prior Year \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline Cash & $56,900 & $57,100 \\ \hline Accounts receivable, net & 14,100 & 17,300 \\ \hline Inventory & 126,460 & 100,000 \\ \hline Total current assets & 197,400 & 174,400 \\ \hline Equipment & 70,000 & 59,200 \\ \hline Accumulateddepreciation-Equipment & (31,700) & (21,800) \\ \hline Total assets & 235,700 & 211,800 \\ \hline \multicolumn{3}{|l|}{ Liabilities and Equity } \\ \hline Accounts payable & $33,700 & $36,200 \\ \hline Salaries payable & 600 & 800 \\ \hline Total current liabilities & 34,300 & 37,000 \\ \hline Equity & & \\ \hline Conmonstock,noparvalueRetainedearnings & 170,00031,400 & 157,40017,400 \\ \hline Total liabilities and equity & 235,700 & 211,800 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline MONTGOMERYINCORPIncomeStatemForCurrentYearEnded & DRATEDntDecember31 \\ \hline Sales & $61,500 \\ \hline Cost of goods sold & (25,500) \\ \hline Gross profit & 36,000 \\ \hline Salaries expense & 7,600 \\ \hline Depreciation expense & 9,900 \\ \hline Income before taxes & 18,500 \\ \hline Income tax expense & 4,500 \\ \hline Net income & $14,000 \\ \hline \end{tabular} Additional Information on Current-Year Transactions a. No dividends are declared or pald. b. Issued additional stock for $12,600 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.)