MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Inventory Salaries payable Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Total current liabilities Equity Current Year Prior Year $ 55,600 $ 55,900 12,500 15,400 112,100 180,200 62,100 (28,100) $ 214,200 $ 29,900 500 30,400 89,000 160,300 52,700 (19,400) $ 193,600 $ 32,200 700 32,900 Common stock, no par value Retained earnings Total liabilities and equity $ 214,200 156,300 27,500 145,500 15,200 $ 193,600 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 $ 54,000 (22,400) 31,600 6,700 8,700 16,200 3,900 $ 12,300 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $10,800 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 indicated by a minus sign.