MONTGOMERY INC. Comparative Balance Sheets December 31, 2018 and 2017
		2018				2017
Assets
Cash	$	64,000			$	64,600
Accounts receivable, net		18,700				23,100
Inventory		167,600				133,500
Total current assets		250,300				221,200
Equipment		92,800				79,000
Accum. depreciationEquipment		(42,000	)			(29,100	)
Total assets	$	301,100			$	271,100
Liabilities and Equity
Accounts payable	$	44,700			$	48,400
Salaries payable		800				1,000
Total current liabilities		45,500				49,400
Equity
Common stock, no par value		216,400				199,900
Retained earnings		39,200				21,800
Total liabilities and equity	$	301,100			$	271,100

MONTGOMERY INC. Income Statement For Year Ended December 31, 2018
Sales				$	78,000
Cost of goods sold					(32,300	)
Gross profit					45,700
Operating expenses
Depreciation expense	$	12,900
Other expenses		9,700
Total operating expense					22,600
Income before taxes					23,100
Income tax expense					5,700
Net income				$	17,400

Additional Information

No dividends are declared or paid in 2018.

Issued additional stock for $16,500 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.)

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
		$0
Cash flows from investing activities
		0
Cash flows from financing activities
		0
		$0
Cash balance at beginning of year
Cash balance at end of year

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