Assets Cash MONTGOMERY INC. Comparative Balance Sheets December 31 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 Current Year $ 34,500 10,000 89,600 134,100 49,600 (22,400) $161,300 $ 23,800 400 24,200 Prior Year $ 34,900 12,400 71,700 119,000 42,400 (15,600) $145,800 $ 25,900 500 26,400 108,500 10,900 117,100 20,000 $161,300 $145,800 MONTGOMERY INC. Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Other expenses Depreciation expense Total operating expense Income before taxes Income tax expense $ 39,600 (16,400) 23,200 $6,800 4,900 11,700 11,500 2,400 $9,100 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $8,600 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 Net income @2 #3 4 54 14 < Prev 18 of 22 55 % 16 A 6 Next > 44 76 &7 B