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MONTGOMERY INC. Comparative Balance Sheets December 31 Current Year $ 33,200 12,100 108,500 153,800 60,100 (27,100) $186,800 $ 28,800 600 29,400 Prior Year $
MONTGOMERY INC. Comparative Balance Sheets December 31 Current Year $ 33,200 12,100 108,500 153,800 60,100 (27,100) $186,800 $ 28,800 600 29,400 Prior Year $ 33,400 14,700 84,900 133,000 50,200 (18,500) $164,700 $ 30,700 700 31,400 118,100 Assets Cash Accounts receivable, net Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity 130,000 27,400 $186,800 Sales MONTGOMERY INC. Income Statement For Current Year Ended December 31 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expense Income before taxes Income tax expense Net income $ 53,500 (22,200) 31,300 $ 8,600 6,600 15,200 16,100 3,900 $ 12,200 15,200 $164,700 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $11,900 cash. c. Purchased equipment for cash; no equipment was sold. 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. (Amounts to be
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