Exercise 12-12 Indirect: Preparing statement of cash flows LO P2, P3 Prior Year MONTGOMERY INK Comparative Balance Sheets December 31 Current Year Assets Carch $ 54,100 Accounts receivable, not 13,400 Inventory 120,1 Total current assets 187,600 Equipment 66,50 Accu, depreciation Equipment (30, 100) Total assets $224,000 Liabilities and Equity Accounts payable $ 32,000 Salaries payable 680 Total current liabilities 32,600 Equity Common stock, no par valu 159,800 Retained earnings 31,600 Total liabilities and equity $224,60 $ 54,280 16,400 94.60 165,400 56,100 (20,700) 52ee, se $ 34,40 RO 35,20 141,200 17.400 MONTGOMERY INC. Income Statement For Current Year Ended Deceber 11 Sales N $ 60,000 Cost of goods sold 2 (25,200) Gross profit 35,600 Operatin Depreciation ponse $ 9,40 Other one Total operating expose 2.968 Inco bufor taxes 16,700 Lico a Net Inco 5 14.20 2,5 Additional Information on Current-Year Transactions s. No dividends are decres or psd b. See on stock for $11.600 sosh c. Purchased equipment for csahi ng equipment wo solo 1. Use the above Information to pregare statement of chanows for the current year using the increen deducted should be indicated by a minus sign.) MONTOOVERING statement of Oach Flowe andreot Method For Current Year Ended December 01 Castows Continent portion Cronoporno Additional Information on Current Year Transactions o. No dividends are declared or pald. b. Issued additional stock for $11.600 cash. c Purchased equipment for cash; no equipment was cold. 1. Use the above Information to prepare a statement of cash flows for the current year us deducted should be indicated by a minus slgn.) MONTGOMERY, INC. statement of Cach Flow indireot Method) For Current Year Ended Deoombar 31 Cash flows from operating activities Adjustments to reconcile net income to not cash provided by operations: Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities de los romancing activiti 5 Chahbag nito abando