6 MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash Accounts...

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6 MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash Accounts receivable, net $ 64,620 18,700 Inventory 02:17:57 Total current assets 167,600 250,300 92,800 (42,000) $ 301,100 $ 64,080 23,100 133,500 221,280 79,000 (29,108) $ 271,188 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 $ 79,900 (32,300) 45,700 9,700 12,900 23,100 5,700 $ 17,408 $ 44,780 800 45,530 216,400 39,200 $ 48,480 1,000 40,480 199,900 21, Rae $ 271,180 $ 301,100 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $16,500 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.) Cash flows from operating activities MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Adjustments to reconcile net income to net cash used in operating activities 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 6 MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash Accounts receivable, net $ 64,620 18,700 Inventory 02:17:57 Total current assets 167,600 250,300 92,800 (42,000) $ 301,100 $ 64,080 23,100 133,500 221,280 79,000 (29,108) $ 271,188 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 $ 79,900 (32,300) 45,700 9,700 12,900 23,100 5,700 $ 17,408 $ 44,780 800 45,530 216,400 39,200 $ 48,480 1,000 40,480 199,900 21, Rae $ 271,180 $ 301,100 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $16,500 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.) Cash flows from operating activities MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Adjustments to reconcile net income to net cash used in operating activities 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