MONTGOMERY INCORPORATED
Comparative Balance Sheets
At December 31	Current Year	Prior Year
Assets
Cash	$ 38,200	$ 38,700
Accounts receivable, net	10,800	13,400
Inventory	96,800	77,500
Total current assets	145,800	129,600
Equipment	53,600	45,800
Accumulated depreciationEquipment	(24,200)	(16,900)
Total assets	$ 175,200	$ 158,500
Liabilities and Equity
Accounts payable	$ 25,700	$ 28,100
Salaries payable	400	500
Total current liabilities	26,100	28,600
Equity
Common stock, no par value	129,300	119,000
Retained earnings	19,800	10,900
Total liabilities and equity	$ 175,200	$ 158,500

MONTGOMERY INCORPORATED
Income Statement
For Current Year Ended December 31
Sales	$ 40,300
Cost of goods sold	(16,700)
Gross profit	23,600
Salaries expense	5,000
Depreciation expense	7,300
Income before taxes	11,300
Income tax expense	2,400
Net income	$ 8,900

Additional Information on Current-Year Transactions

1. No dividends are declared or paid.
2. Issued additional stock for $10,300 cash.
3. 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.