Cash MONTGOMERY INC. Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Assets $ 57,800 $ 57,900 Accounts receivable, ble. 14,300 17,600 net Inventory 128,200 101,700 Total Current assets 200,300 177.200 Equipment 71,000 60,200 Accum. depreciation- (32,100) (22,200) Equipment Total assets $239,200 $215,200 Liabilities and Equity Accounts payable $ 34,200 $ 36,900 Salaries payable 600 Total current 34,800 37,700 liabilities Equity Common stock, no par172.900 160,100 value Retained earnings 31,500 17,400 Total liabilities and $239.200 $215,200 equity 800 MONTGOMERY INC. Income Statement Tor Year Ended December 31, 2018 Sales $ 61,800 Cost of goods (25, 600) sold Gross profit 36,200 Operating expenses Depreciation $9.900 expense other expenses 7,700 Total operating 17,600 expense Income before 18,600 taxes Income tax 4,500 expense Net Income $ 14.100 Additional Information a No dividends are declared or paid in 2018 b. Issued additional stock for $12.800 cash in 2018 c. Purchased equipment for cash in 2018, no equipment was sold in 2018. 1. Use the above financial statements and additional Information to prepare a statement of cash flows for the year ended December 31, 2018, using the indirect method (Amounts to be deducted should be indicated by a minus sign.) MONTGOMERY, INC Statement of Cash Flows (Indirect Method) For Year Ended December 31, 2018 Net Income Adjustments to reconcile net income to net cash provided by operations Income statement tems not affecting cash Changes in current operating assets and abities Cash flows from investing activities $ lo Cash flows from financing activities Cash balance at beginning of year Cash balance at end of year