MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash $ 32,300 $ 32,400 Accounts receivable, net 10,600 13,000 Inventory 95, 100 75, 100 Total current assets 138,000 120,500 Equipment 52,700 44,500 Accumulated depreciation-Equipment (23,800) (16,500) Total assets $ 166,900 $ 148,500 Liabilities and Equity Accounts payable $ 25,300 $ 27,400 Salaries payable 500 600 Total current liabilities 25,800 28,000 Equity Common stock, no par value 117,300 107,400 Retained earnings 2.800 13, 100 Total liabilities and equity $ 166,900 $ 148,500 MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Sales $ 46,200 Cost of goods sold (19,200) Gross profit 27,000 Salaries expense 5,600 Depreciation expense 7,300 Income before taxes 14,100 Income tax expense 3,400 Net income $ 10,700 Additional Information on Current-Year Transactions $ 10,700 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash used in operating activities: Income statement items not affecting cash Depreciation expense 7.300 Changes in current operating assets and liabilities Decrease in accounts receivable Increase in inventory Decrease in accounts payable Decrease in salaries payable 00 2,400 (20,000) (2.100) (100) $ (1,800) Cash flows from investing activities Cash paid for equipment > (8,200) $ (8.200) Cash flows from financing activities Cash received from stock issuance > 9.900 $ $ Net cash provided by financing activities Net decrease in cash Cash balance at beginning of year Cash balance at end of year 9,900 (100) 32.400 32,300 $ Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $9,900 cash. c. Purchased equipment for cash; no equipment was sold. Answer is not complete. MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31