es MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash $ 53,800 $ 53,900 Accounts receivable, net 13,400 120,100 Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 187,300 66,500 (30,100) $ 223,700 $ 32,000 600 32,600 159,400 16,400 94,800 165,100 56,100 (20,700) $ 200,500 $ 34,400 800 35,200 147,900 17,400 $ 200,500 Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings 31,700 Total liabilities and equity $ 223,700 MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income $ 60,900 (25,300) 35,600 7,400 9,400 18,800 4,500 $ 14,300 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $11,500 cash. c. Purchased equipment for cash; no equipment was sold. Cash flows from operating activities MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Adjustments to reconcile net income to net cash used in operating activities: Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Cash balance at beginning of year