MONTGOMERY INCORPORATED Comparative Balance Sheets 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 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 $ 76,600 (31,800) 44,800 9,300 12,100 23,400 5,600 $ 17,800 Current Year Prior Year $ 58,600 $ 59,000 17,300 21,200 155,100 231,000 85,900 (38,900) *$ 278,000 $ 41,400 800 42,200 122,500 202,700 72,500 (26,800) $ 248,400 $ 44,500 1,000 45,500 181,100 21,800 196,200 39,600 $ 278,000 $ 248,400 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.