MONTGOMERY INC. Comparative Balance Sheets December 31, 2014 and 2013
		2014				2013
Assets
Cash	$	30,400			$	30,550
Accounts receivable, net		10,050				12,150
Inventory		90,100				70,150
Equipment		49,900				41,500
Accum. depreciationEquipment		(22,500	)			(15,300	)
Total assets	$	157,950			$	139,050
Liabilities and Equity
Accounts payable	$	23,900			$	25,400
Salaries payable		500				600
Common stock, no par value		110,000				100,000
Retained earnings		23,550				13,050
Total liabilities and equity	$	157,950			$	139,050

MONTGOMERY INC. Income Statement For Year Ended December 31, 2014
Sales			$	45,575
Cost of goods sold				(18,950	)
Gross profit				26,625
Operating expenses
Depreciation expense	$	7,200
Other expenses		5,550
Total operating expense				12,750
Income before taxes				13,875
Income tax expense				3,375
Net income			$	10,500

Additional Information

a.	No dividends are declared or paid in 2014.
b.	Issued additional stock for $10,000 cash in 2014.
c.	Purchased equipment for cash in 2014; no equipment was sold in 2014.

(1)	Use the above financial statements and additional information to prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)