At December 31 MONTGOMERY INCORPORATED Comparative Balance Sheets Current Year Prior Year $ 56,900 14,100 126,400 197,400 70,000 (31,700) $ 57,100 17,300 100,000 174,400 59,200 (21,800) Assets 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 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 $ 235,700 $ 211,800 $ 33,700 600 34,300 170,000 31,400 $ 235,700 $ 36,200 800 37,000 157,400 17,400 $ 211,800 Gross profit Salaries expense Depreciation expense Income before taxes: Income tax expense Net income $ 61,500 (25,500) 36,000 7,600 9,900 18,500 4,500 $ 14,000 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $12,600 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.