Exercise 23-13 Your answer is partially correct. Try again. Monty Inc., a greeting card compary, had the following statements prepared as of December 31, 2017 MONTY INC AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 $6,000 $6,900 62,400 50,800 Short-term debt investments (available-or-sale) 35,100 18,100 0,100 60,400 4,000 152,400 131,000 Cash Accounts receivable Inventory Prepaid rent Equipment 5,100 (34,700) (24,800) 45,500 Copyrights 49,900 Total assets $311,900 $296,300 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity 45,900 $39,900 6,000 4,000 8,100 10,000 59,500 68,700 100,000 100,000 30,000 30,000 56,300 37,700 $311,900 $296,300 4,000 8,100 MONTY INC INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross profit $337,125 176,500 160,625 120,600 40,025 Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income $11,400 2,000 9,400 30,625 6,125 $24,500 Additional information: 1. Dividends in the amount of $5,900 were declared and paid during 2017 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year 4. Equipment that had a cost of $20,000 and was 70% deprediated was sold during 2017 Prepare a statement of cash nows using the direct method. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) MONTY INC Statement of Cash Hows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Cash Received from Customers Cash Payments to Suppliers Cash Payments for Income Taxes Cash Payments for Interest Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Investments Net Cash Used by Investing Activities Cash Flows from Financing Activities Principal Payment on Long-term Loan Principal Payment on Short-term Loan Dividend Payments Net Cash Used by Financing Activities Net Dearease in Cash Cash at Beginning of Period Cash at End of Period