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 1 iabilities Equity Common stock, no par value Retained earnings Total Iiabilities and equity Current Year Prior Year \begin{tabular}{rr} $30,400 & $30,550 \\ 10,650 & 12,150 \\ 90,100 & 70,150 \\ \hline 130,550 & 112,850 \\ 49,900 & 41,500 \\ (22,500) & (15,300) \\ \hline$157,950 & $139,050 \\ \hline \end{tabular} $23,900500$25,40026,000 \begin{tabular}{rr} 110,000 & 100,000 \\ 23,550 & 13,050 \\ \hline$157,950 & $139,050 \\ \hline \hline \end{tabular} Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $10,000 cash. c. 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 indicoted by a minus sign. \begin{tabular}{|l|} \hline MONTGOMERY, INCORPORATED \\ \hline Statement of Cash Flows (Indirect Method) \\ \hline Cash flows from operating activities \\ \hline For Current Year Ended December 31 \\ \hline Income statement items not affecting cash \\ \hline \\ \hline Changes in current operating assets and liabilities \\ \hline \end{tabular}