MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year 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 $ 45,575 (18,950) 26,625 5,550 $ 30,400 10,050 90,100 130,550 49,900 (22,500) $157,950 $ 23,900 500 24,400 110,00 23,550 $ 157,950 $ 30,550 12,150 70,150 112,850 41,500 (15,300) $ 139,050 $ 25,400 600 26,000 100,000 13,050 $ 139,050 Income before taxes. Income tax expense Net income 7,200 13,875) 3,375 $ 10,500 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 indicated by a minus sign.