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help pls MONTGOMERY INCORPORATED Comparative Balance Sheets begin{tabular}{l|r|r|} hline At December 31 & Current Year & multicolumn{1}{|c|}{ Prior Year } hline Assets & &
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MONTGOMERY INCORPORATED Comparative Balance Sheets \begin{tabular}{l|r|r|} \hline At December 31 & Current Year & \multicolumn{1}{|c|}{ Prior Year } \\ \hline Assets & & \\ \hline Cash & $30,400 & $30,550 \\ \hline Accounts receivable, net & 10,050 & 12,150 \\ \hline Inventory & 90,100 & 70,150 \\ \hline Total current assets & 130,550 & 112,850 \\ \hline Equipment & 49,900 & 41,500 \\ \hline Accumulated depreciation -Equipment & (22,500) & (15,300) \\ \cline { 2 - 3 } & $157,950 & $139,050 \\ \hline Lotal assets & & \\ \hline Liabilities and Equity & $23,900 & $25,400 \\ \hline Salaries payable & 500 & 600 \\ \hline Total current liabilities & 24,400 & 26,000 \\ \hline Equity & & \\ \hline Common stock, no par value & 110,000 & 100,000 \\ \hline Retained earnings & 23,550 & 13,050 \\ \hline Total liabilities and equity & $157,950 & $139,050 \\ \hline \end{tabular} MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 \begin{tabular}{l|r} \hline Sales & $45,575 \\ \hline Cost of goods sold & 18,950 \\ \hline Gross profit & 26,625 \\ \hline Salaries expense & 5,550 \\ \hline Depreciation expense & 7,200 \\ \hline Income before taxes & 13,875 \\ \hline Income tax expense & 3,375 \\ \hline Net income & $10,500 \\ \hline \end{tabular} Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $10,000 cash. c. Purchased equipment for cash; no equipment was sold. Required: 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities 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 Cash balance at end of yearStep by Step Solution
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