LINK TO TEXT Question Attempts: 0 of 3 used SAVE FOR LATER SURMITAN 174,000 163,300 119,100 44,200 Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income $11,600 1,900 9,700 34,500 6,900 $27,600 Additional information: 1. Dividends in the amount of $6,100 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% depreciated was sold during 2017. Prepare a statement of cash flows using the indirect 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 Flows Adjustments to reconcile net income to 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 $6,000 $6,900 Accounts receivable 62,500 50,900 Short-term debt investments (available-for-sale) 35,200 17,900 Inventory 40,300 59,500 Prepaid rent 4,900 4,100 Equipment 153,100 129,600 Accumulated depreciation equipment (35,200 ) (24,700 ) Copyrights 45,600 50,500 Total assets $312,400 $294,700 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 $15,500 4,000 8,000 8,000 59,400 100,000 30,000 57,500 $312,400 $40,000 6,100 3,900 9,900 68,800 100,000 30,000 36,000 $294,700 MONTY INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue Cost of goods sold $337,300 174,000