At December 31 Assets MONTGOMERY INCORPORATED Comparative Balance Sheets Cash Accounts receivable, net Inventory Total current...

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At December 31 Assets MONTGOMERY INCORPORATED Comparative Balance Sheets 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 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 13,050 $ 139,050 Common stock, no par value Retained earnings 23,550 Total liabilities and equity $ 157,950 MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Sales Cost of goods sold $ 45,575 Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income (18,950) 26,625 5,550 7,200 13,875 3,375 $ 10,500 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $10,000 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.) At December 31 Assets MONTGOMERY INCORPORATED Comparative Balance Sheets 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 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 13,050 $ 139,050 Common stock, no par value Retained earnings 23,550 Total liabilities and equity $ 157,950 MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Sales Cost of goods sold $ 45,575 Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income (18,950) 26,625 5,550 7,200 13,875 3,375 $ 10,500 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $10,000 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.)