MONTGOMERY INC. Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 30,400 $ 30,550 Accounts receivable, net 10,050 12,150 Inventory 90,100 70,150 Total current assets 130,550 112,850 Equipment 49,900 41,500 Accum. depreciationEquipment (22,500 ) (15,300 ) Total assets $ 157,950 $ 139,050 Liabilities and Equity Accounts payable $ 23,900 $ 25,400 Salaries payable 500 600 Total current liabilities 24,400 26,000 Equity Common stock, no par value 110,000 100,000 Retained earnings 23,550 13,050 Total liabilities and equity $ 157,950 $ 139,050 MONTGOMERY INC. Income Statement For Current Year Ended December 31 Sales $ 45,575 Cost of goods sold (18,950 ) Gross profit 26,625 Operating expenses Depreciation expense $ 7,200 Other expenses 5,550 Total operating expense 12,750 Income before taxes 13,875 Income tax expense 3,375 Net income $ 10,500 Additional Information on Current-Year Transactions No dividends are declared or paid. Issued additional stock for $10,000 cash. 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 deducted should be indicated by a minus sign.) USE FORMULAS