7 15 points eBook MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash $ 31,000 $ 31,200 Accounts receivable, net 10,300 12,600 Inventory 92,400 72,800 Total current assets 133,700 116,600 Equipment 51,200 43,100 Accumulated depreciation-Equipment (23, 100) (16,000) Total assets $ 161,800 $ 143,700 Liabilities and Equity Accounts payable $ 24,600 $ 26,600 Salaries payable 500 600 Total current liabilities 25,100 27,200 Equity Common stock, no par value 112,800 103,400 Retained earnings 23,900 13, 100 Total liabilities and equity $ 161,800 $ 143,700 Print References MONTGOMERY INCORPORATED Income Statement Por Current Year Ended December 31 Sales $ 45,900 Cost of goods sold (19,100) Gross profit 26,800 Salaries oxpense 5,500 Depreciation expense 7.100 Income before taxes 14,200 Income tax expense 3,400 Net income $ 10,800 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $9,400 cash. Dienradament fermentad 7 a. No dividends are declared or pald. b. Issued additional stock for $9.400 cash. c. Purchased equipment for cash; no equipment was sold. 15 points 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.) Book Print MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Reces Cash flows from operating activities 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 $ 0 Cash flows from investing activities Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash.flows from operating activities Adjustments to reconcile net incomb to net cash used in operating activities: 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