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 66,500 (30,100) $ 223,700 Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings $ 32,000 600 32,600 $ 53,800 13,400 120,100 187,300 $ 53,900 16,400 94,800 165,100 56,100 (20,700) $ 200,500 $ 34,400 800 35,200 159,400 147,900 31,700 17,400 Total liabilities and equity $ 223,700 $ 200,500 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 $ 60,900 (25,300) 35,600 7,400 9,400 18,800 4,500 $ 14,300