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MONTGOMERY INC. Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Cash $ 38,200 $ 38,700 Accounts receivable, net 10,800 13,400 Inventory 96,800
MONTGOMERY INC. Comparative Balance Sheets December 31, 2018 and 2017 | |||||||
2018 | 2017 | ||||||
Assets | |||||||
Cash | $ | 38,200 | $ | 38,700 | |||
Accounts receivable, net | 10,800 | 13,400 | |||||
Inventory | 96,800 | 77,500 | |||||
Total current assets | 145,800 | 129,600 | |||||
Equipment | 53,600 | 45,800 | |||||
Accum. depreciationEquipment | (24,200 | ) | (16,900 | ) | |||
Total assets | $ | 175,200 | $ | 158,500 | |||
Liabilities and Equity | |||||||
Accounts payable | $ | 25,700 | $ | 28,100 | |||
Salaries payable | 400 | 500 | |||||
Total current liabilities | 26,100 | 28,600 | |||||
Equity | |||||||
Common stock, no par value | 129,300 | 119,000 | |||||
Retained earnings | 19,800 | 10,900 | |||||
Total liabilities and equity | $ | 175,200 | $ | 158,500 | |||
MONTGOMERY INC. Income Statement For Year Ended December 31, 2018 | ||||||
Sales | $ | 40,300 | ||||
Cost of goods sold | (16,700 | ) | ||||
Gross profit | 23,600 | |||||
Operating expenses | ||||||
Depreciation expense | $ | 7,300 | ||||
Other expenses | 5,000 | |||||
Total operating expense | 12,300 | |||||
Income before taxes | 11,300 | |||||
Income tax expense | 2,400 | |||||
Net income | $ | 8,900 | ||||
Additional Information
No dividends are declared or paid in 2018.
Issued additional stock for $10,300 cash in 2018.
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.)
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