Exercise 12-12 Indirect: Preparing statement of cash flows LO P2, P3

MONTGOMERY INC. Comparative Balance Sheets December 31
	Current Year						Prior Year
Assets
Cash		$	58,200					$	58,100
Accounts receivable, net			18,300						22,300
Inventory			164,100						128,800
Total current assets			240,600						209,200
Equipment			90,900						76,200
Accum. depreciationEquipment			(41,000	)					(28,100	)
Total assets		$	290,500					$	257,300
Liabilities and Equity
Accounts payable		$	43,600					$	46,600
Salaries payable			900						1,100
Total current liabilities			44,500						47,700
Equity
Common stock, no par value			202,500						185,700
Retained earnings			43,500						23,900
Total liabilities and equity		$	290,500					$	257,300

MONTGOMERY INC. Income Statement For Current Year Ended December 31
Sales				$	83,500
Cost of goods sold					(34,600	)
Gross profit					48,900
Operating expenses
Depreciation expense	$	12,900
Other expenses		10,300
Total operating expense					23,200
Income before taxes					25,700
Income tax expense					6,100
Net income				$	19,600

Additional Information on Current-Year Transactions

1. No dividends are declared or paid.
2. Issued additional stock for $16,800 cash.
3. 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.)