Current Attempt in Progress Monty Company had the following information available at the end of 2017. MONTYCOMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31, 2017 AND 2016 2016 2017 Cash $4,010 $9.970 Accounts receivable 20,500 13,040 Short-term investments 21,940 30,160 Inventory 42,320 34,780 Prepaid rent 3,020 12,120 Prepaid insurance 2090 90 Supplies 1000 74 175.440 Land 126,160 Buildings 352,130 352,130 Accumulated depreciation-buildings (104,830) (87.130) Equipment 530,020 403.210 Accumulated depreciation-equipment (130,870) (112,370) 49,940 Patents 45,030 Total assets $918,480 $875,494 $31,890 Accounts payable $22,190 Income taxes payable 5,040 3,990 Salaries and wages payable 5,000 3,030 Short-term notes payable 10,020 10,020 Long-term notes payable 60,200 69,910 396,570 Bonds payable 396,570 Premium on bonds payable 32,500 35,994 Common stock 238,900 222,010 24,850 Paid-in capital in excess of par-common stock 17,550 Retained earnings 123,210 84,530 Total liabilities and stockholders' equity $918,480 $875,494 MONTY COMPANY INCOME STATEMENT AND DIVIDEND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2017 $1,152,250 Sales revenue 745,860 Cost of goods sold 406,390 Gross margin Operating expenses Selling expenses $79.980 150,950 Administrative expenses Depreciation/Amortization expense 41110 Total operating expenses Income from operations 272,040 134,350 Other revenues/expenses Gain on sale of land 8,080 Gain on sale of short-term investment 3,990 Dividend revenue 2,400 Interest expense (51260) (36,790) Income before taxes 97.560 Income tax expense 39,290 Net income 58,270 Dividends to common stockhol ders (19.590) To retained earnings $38,680 Prepare a statement of cash flows for Monty Company using the direct method accompanied by a reconciliation schedule Assume the short-term investments are debt securities, classified as available-for-sale. (Show amounts in the investing and financing sections that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000)) MONTY COMPANY Statement of Cash Flows (Direct Method) Cash receipts: Cash payments: (Show amounts that decrease cash flow with either a -sign e.g.-15,000 or in parenthesis e.g. (15,000).) Reconciliation Schedule Reconciliation of Net Income to Adjustments to reconcile net income to $ Current Attempt in Progress Monty Company had the following information available at the end of 2017. MONTYCOMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31, 2017 AND 2016 2016 2017 Cash $4,010 $9.970 Accounts receivable 20,500 13,040 Short-term investments 21,940 30,160 Inventory 42,320 34,780 Prepaid rent 3,020 12,120 Prepaid insurance 2090 90 Supplies 1000 74 175.440 Land 126,160 Buildings 352,130 352,130 Accumulated depreciation-buildings (104,830) (87.130) Equipment 530,020 403.210 Accumulated depreciation-equipment (130,870) (112,370) 49,940 Patents 45,030 Total assets $918,480 $875,494 $31,890 Accounts payable $22,190 Income taxes payable 5,040 3,990 Salaries and wages payable 5,000 3,030 Short-term notes payable 10,020 10,020 Long-term notes payable 60,200 69,910 396,570 Bonds payable 396,570 Premium on bonds payable 32,500 35,994 Common stock 238,900 222,010 24,850 Paid-in capital in excess of par-common stock 17,550 Retained earnings 123,210 84,530 Total liabilities and stockholders' equity $918,480 $875,494 MONTY COMPANY INCOME STATEMENT AND DIVIDEND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2017 $1,152,250 Sales revenue 745,860 Cost of goods sold 406,390 Gross margin Operating expenses Selling expenses $79.980 150,950 Administrative expenses Depreciation/Amortization expense 41110 Total operating expenses Income from operations 272,040 134,350 Other revenues/expenses Gain on sale of land 8,080 Gain on sale of short-term investment 3,990 Dividend revenue 2,400 Interest expense (51260) (36,790) Income before taxes 97.560 Income tax expense 39,290 Net income 58,270 Dividends to common stockhol ders (19.590) To retained earnings $38,680 Prepare a statement of cash flows for Monty Company using the direct method accompanied by a reconciliation schedule Assume the short-term investments are debt securities, classified as available-for-sale. (Show amounts in the investing and financing sections that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000)) MONTY COMPANY Statement of Cash Flows (Direct Method) Cash receipts: Cash payments: (Show amounts that decrease cash flow with either a -sign e.g.-15,000 or in parenthesis e.g. (15,000).) Reconciliation Schedule Reconciliation of Net Income to Adjustments to reconcile net income to $