JA Use the following financial statements and additional information to (1) prepare a statement of cash flows for the year ended December 31, 2018, using the indirect method, and (2) analyze and briefly discuss the statement prepared in part 1 with special attention to operating activities and to the company's cash level. MONTGOMERY INC Comparative Balance Sheets December 31, 2018 and 2017 018-2017 s 30,400 $ 30,550 10,050 12,150 90.100 70.150 130,550 112.850 49,900 41,500 Cash Accounts receivable, net Inventory Total current assets Equipment Accum. depreciation-Equipment (22.500) (15.300) Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value $157,950 $139,050 S 23.900 $ 25.400 24,400 26,000 110,000 100,000 23.550 13,050 $157.950 S139,050 Total liabilities and equity MONTGOMERY INC. Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses $45.575 (18.950) 26.625 Depreciation expense $7.200 Other expenses Total operating expense Income before taxes Income tax expense Net income 12.750 13,875 3,375 $10.500 Additional Information a. No dividends are declared or paid in 2018. b. Issued additional stock for $10.000 cash in 2018. e Purchased equipment for cash in 2018; no equipment was sold in 2018