MONTGOMERY INCORPORATED

Comparative Balance Sheets

At December $31$ Current Year Prior Year

Assets

Cash $ $78,500$ $ $78,600$

Accounts receivable, net $16,70020,400$

Inventory $149,700117,900$

Total current assets $244,900216,900$

Equipment $82,90069,800$

Accumulated depreciation$$Equipment $(37,500)(25,700)$

Total assets $ $290,300$ $ $261,000$

Liabilities and Equity

Accounts payable $ $39,900$ $ $42,700$

Salaries payable $7001,000$

Total current liabilities $40,60043,700$

Equity

Common stock, no par value $210,200195,500$

Retained earnings $39,50021,800$

Total liabilities and equity $ $290,300$ $ $261,000$

MONTGOMERY INCORPORATED

Income Statement

For Current Year Ended December $31$

Sales $ $76,100$

Cost of goods sold $(31,600)$

Gross profit $44,500$

Salaries expense $9,400$

Depreciation expense $11,800$

Income before taxes $23,300$

Income tax expense $5,600$

Net income $ $17,700$

Additional Information on Current$-$Year Transactions