MONTGOMERY, INC. Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities 10 Net income 17,800 points Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense 12,100 eBook Changes in current operating assets and liabilities Decrease in accounts receivable Print Increase in inventory Decrease in accounts payable Decrease in salaries payable References 29,900 Cash flows from investing activities Cash paid for equipment Cash flows from financing activities Cash received from stock issuance 0 29,900 Cash balance at beginning of year 29,900 Cash balance at end of year Chapter 12 Homeworki Saved Help Save & Exit Subml Check my work MONTGOMERY INC. Income Statement For Current Year Ended December 31 10 $76,600 (31,800) 44,800 Sales points Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses ook $12,100 9,300 Print Total operating expense 21,400 23, 400 5,600 Income before taxes References Income tax expense $ 17,800 Net income Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $15,100 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 deducted should be indicated by a minus sign.) Mc LO Chapter 12 Homework Saved Help Save 5 MONTGOMERY INC Comparative Balance Sheets December 31 Prior Year Current Year 10 Assets points Cash Accounts receivable, net Inventory Total current assets $58, 600 17,300 155,100 59,000 21,200 122,500 202, 700 72,500 ok 231,000 85, 900 (38,900) Equipment Accum. depreciation-Equipment Print (26,800) $278,000 Total assets $248,400 References Liabilities and Equity Accounts payable Salaries payable $ 44,500 $ 41,400 800 1,000 Total current liabilities 42, 200 45, 500 Equity Common stock, no par value Retained earnings 196, 200 39,600 181,100 21,800 Total liabilities and equity $278, 000 $248, 400 MONTGOMERY INC Income Statement For Current Year Ended December 31 $ 76,600 Sales nf nnnd cold. Mc 5 of 5 Prev Next Graw LO