MONTGOMERY INC. Comparative Balance Sheets December 31, 2016 and 2015
		2016				2015
Assets
Cash	$	30,800			$	31,000
Accounts receivable, net		8,900				10,900
Inventory		79,800				63,000
Total current assets		130,550				112,850
Equipment		44,200				37,300
Accum. depreciationEquipment		(19,900	)			(13,800	)
Total assets	$	143,800			$	128,400
Liabilities and Equity
Accounts payable	$	21,200			$	22,900
Salaries payable		400				500
Total current liabilities		24,400				26,000
Equity
Common stock, no par value		102,400				94,100
Retained earnings		19,800				10,900
Total liabilities and equity	$	143,800			$	128,400

MONTGOMERY INC. Income Statement For Year Ended December 31, 2016
Sales			$	38,500
Cost of goods sold				(16,000	)
Gross profit				22,500
Operating expenses
Depreciation expense	$	6,100
Other expenses		4,700
Total operating expense				10,800
Income before taxes				11,700
Income tax expense				2,800
Net income			$	8,900

Additional Information

a.	No dividends are declared or paid in 2016.
b.	Issued additional stock for $8,300 cash in 2016.
c.	Purchased equipment for cash in 2016; no equipment was sold in 2016.

(1)	Use the above financial statements and additional information to prepare a statement of cash flows for the year ended December 31, 2016, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)