At December 31 Assets Cash MONTGOMERY INC. Comparative Balance Sheets 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 Prior Year $ 30,400 10,050 90,100 130,550 49,900 (22,500) $157,950 $ 23,900 500 24,400 110,000 $ 30,550 12,150 70,150 112,850 41,500 (15,300) $139,050 $ 25,400 600 26,000 100,000 23,550 $157,950 Sales MONTGOMERY INC. Income Statement For Current Year Ended December 31 Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income $ 45,575 (18,950) 26,625] 5,550 7,200 13,875 3,375 $ 10,500 Additional Information on Current-Year Transactions 13,050 $139,050