MONTGOMERY INCORPORATED

Comparative Balance Sheets

At December $31$ Current Year Prior Year

Assets

Cash $ $53,800$ $ $53,900$

Accounts receivable, net $13,40016,400$

Inventory $120,10094,800$

Total current assets $187,300165,100$

Equipment $66,50056,100$

Accumulated depreciation$$Equipment $(30,100)(20,700)$

Total assets $ $223,700$ $ $200,500$

Liabilities and Equity

Accounts payable $ $32,000$ $ $34,400$

Salaries payable $600800$

Total current liabilities $32,60035,200$

Equity

Common stock, no par value $159,400147,900$

Retained earnings $31,70017,400$

Total liabilities and equity $ $223,700$ $ $200,500$

MONTGOMERY INCORPORATED

Income Statement

For Current Year Ended December $31$

Sales $ $60,900$

Cost of goods sold $(25,300)$

Gross profit $35,600$

Salaries expense $7,400$

Depreciation expense $9,400$

Income before taxes $18,800$

Income tax expense $4,500$

Net income $ $14,300$

Additional Information on Current$-$Year Transactions

No dividends are declared or paid.

Issued additional stock for $$11,500$ cash.

Purchased equipment for cash; no equipment was sold.

Use the above information to prepare a statement of cash flows for the current year using the Indirect method.

Note: Amounts to be deducted should be Indlcated by a minus sign.