MONTGOMERY INC. Comparative Balance Sheets December 31, 2018 and 2017
		2018				2017
Assets
Cash	$	58,200			$	58,100
Accounts receivable, net		18,300				22,300
Inventory		164,100				128,800
Total current assets		240,600				209,200
Equipment		90,900				76,200
Accum. depreciationEquipment		(41,000	)			(28,100	)
Total assets	$	290,500			$	257,300
Liabilities and Equity
Accounts payable	$	43,600			$	46,600
Salaries payable		900				1,100
Total current liabilities		44,500				47,700
Equity
Common stock, no par value		202,500				185,700
Retained earnings		43,500				23,900
Total liabilities and equity	$	290,500			$	257,300

MONTGOMERY INC. Income Statement For Year Ended December 31, 2018
Sales				$	83,500
Cost of goods sold					(34,600	)
Gross profit					48,900
Operating expenses
Depreciation expense	$	12,900
Other expenses		10,300
Total operating expense					23,200
Income before taxes					25,700
Income tax expense					6,100
Net income				$	19,600

Additional Information

No dividends are declared or paid in 2018.

Issued additional stock for $16,800 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		$0