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 \begin{tabular}{rr} $30,400 & $30,550 \\ 10,050 & 12,150 \\ 90,100 & 70,150 \\ \hline 130,550 & 112,850 \\ 49,900 & 41,500 \\ (22,500) & (15,300) \\ \hline$157,950 & $139,050 \\ \hline$23,900 & $25,400 \\ 500 & 600 \\ \hline 24,400 & 26,000 \\ \hline 110,000 & 100,000 \\ 23,550 & 13,050 \\ \hline$157,950 & $139,050 \\ \hline \end{tabular} Additional Information on Current-Yeor Transactions a. No dividends are declared or paid. b. Issued additional stock for $10,000cash. c. Purchased equipment for cash, ho 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 o minus sign.) MONTGOMERY, INCORPORAIED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities \begin{tabular}{|l|} \hline Net income \\ \hline Adjustments to reconcile net income to net cash used in operating activities: \\ \hline \end{tabular} Income statement items not affecting cash Cash flows from investing activities