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 Income before taxes Income tax expense Net income $ 76,100 (31,600) 44,500 9,400 11,800 23,300 5,600 $ 17,700 $ 78,500 16,700 149,700 244,900 82,900 (37,500) $ 290,300 $ 39,900 700 40,600 210,200 39,500 $ 290,300 $ 78,600 20,400 117,900 216,900 69,800 (25,700) $ 261,000 $ 42,700 1,000 43,700 195,500 21,800 $ 261,000 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $14,700 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. (Amounts to be deducted should be indicated by a minus sign.)