MONTGOMERY INC. Comparative Balance Sheets Assets Cash Accounts receivable, net Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity December 31 Current Year Prior Year $ 58,600 17,300 $ 59,000 21,200 155,100 122,500 231,000 202,700 85,900 (38,900) $278,000 $ 41,400 800 72,500 (26,800) $248,400 $ 44,500 1,000 42,200 45,500 196,200 181,100 39,600 21,800 $278,000 $248,400 MONTGOMERY INC. Income Statement For Current Year Ended December 31 Sales $ 76,600 Cost of goods sold (31,800) Gross profit 44,800 Operating expenses Depreciation expense $12,100 Other expenses 9,300 Total operating expense Income before taxes 21,400 23,400 Income tax expense Net income: 5,600 $ 17,800