MONTGOMERY INCORPORATED At December 31 Assets Cash Accounts receivable, net Inventory Total current assets Equipment Accumulated 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 Current Year Prior Year \begin{tabular}{rr} $33,200 & $33,400 \\ 12,100 & 14,700 \\ 108,500 & 84,900 \\ \hline 153,800 & 133,000 \\ 60,100 & 50,200 \\ (27,100) & (18,500) \\ \hline$186,800 & $164,700 \\ \hline \end{tabular} \begin{tabular}{rr} $28,800 & $30,700 \\ 600 & 700 \\ \hline 29,400 & 31,400 \end{tabular} \begin{tabular}{rr} 130,000 & 118,100 \\ 27,400 & 15,200 \\ \hline$186,800 & $164,700 \\ \hline \end{tabular} MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income $53,500(22,200)31,3006,6008,60016,1003,900$12,200 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