Exercise 23-14 Monty Inc., a greeting card company, had the following statements prepared as of December 31, 2017 MONTY INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,100 $6,900 Accounts receivable 62,500 51,000 Short-term debt investments (available-for-sale) 34,800 18,100 Inventory 39,600 60,200 Prepaid rent 4,900 4,000 Equipment 154,500 130,100 Accumulated depreciation-equipment (34,800 ) (25,300 ) Copyrights 46,300 50,400 Total assets $313,900 $295,400 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 $46,000 4,000 8,100 8,000 59,700 100,000 30,000 58,100 $313,900 $40,200 6,000 4,000 10,000 69,000 100,000 30,000 36,200 $295,400 MONTY INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense $11,300 Gain on sale of equipment 2,000 Income before tax Income tax expense Net income $339,075 175,000 164,075 119,900 44,175 9,300 34,875 6,975 $27,900 Additional information: 1. Dividends in the amount of $6,000 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 $19,900 and was 70% depreciated was sold during 2017, Prepare a statement of cash flows using the indirect method. (Show amounts that decrea