MONTGOMERY INCORPORATED

Comparative Balance Sheets

At December $31$ Current Year Prior Year

Assets

Cash $ $58,200$ $ $58,100$

Accounts receivable, net $18,30022,300$

Inventory $164,100128,800$

Total current assets $240,600209,200$

Equipment $90,90076,200$

Accumulated depreciation$$Equipment $(41,000)(28,100)$

Total assets $ $290,500$ $ $257,300$

Liabilities and Equity

Accounts payable $ $43,600$ $ $46,600$

Salaries payable $9001,100$

Total current liabilities $44,50047,700$

Equity

Common stock, no par value $202,500185,700$

Retained earnings $43,50023,900$

Total liabilities and equity $ $290,500$ $ $257,300$

MONTGOMERY INCORPORATED

Income Statement

For Current Year Ended December $31$

Sales $ $83,500$

Cost of goods sold $(34,600)$

Gross profit $48,900$

Salaries expense $10,300$

Depreciation expense $12,900$

Income before taxes $25,700$

Income tax expense $6,100$

Net income $ $19,600$

Additional Information on Current$-$Year Transactions

No dividends are declared or paid.

Issued additional stock for $$16,800$ 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.

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