MONTGOMERY INC. Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Cash Accounts receivable, net Inventory Total current assets Equipment Accum. depreciation-Equipment 38,900)_(26,800) Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings Total 1iabilities and equity $278,000 $248,400 $ 58,600 59,000 21,200 155,100 122,500 231,000 202,700 85,900 72,500 17,300 $278,000 $248,400 $ 41,400 $ 44,500 1,000 45,500 800 42,200 196,200 181,100 39,600 21,800 MONTGOMERY INC. Income Statement For Year Ended December 31, 2018 $ 76,606 Sales Cost of goods sold Gross profit Operating expenses (31,800) 44,80 Depreciation expense $12,100 9,300 Other expenses Total operating expense Income before taxes Income tax expense Net income 21,400 23,400 5,600 $ 17,800 Addltional Information a. No dividends are declared or pald In 2018. b. Issued additional stock for $15,100 cash In 2018. c. Purchased equipment for cash In 2018; no equipment was sold In 2018. 1. Use the above financial statements and additional Information to prepare a statement of cash flows for the year ended December 31, 2018, using the Indirect method. (Amounts to be deducted should be Indicated by a minus sign.) MONTGOMERY, INC. Statement of Cash Flows (Indirect Method) For Year Ended December 31, 2018 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Cash balance at beginning of year Cash balance at end of year