MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 current Year. Prior Year Assets Cash Accounts receivable, net Inventory Total current assets Equipment \begin{tabular}{rr} $55,900 & $56,300 \\ 13,800 & 16,800 \\ 123,700 & 97,100 \\ \hline 193,400 & 176,200 \\ 68,500 & 57,500 \end{tabular} Total assets \begin{tabular}{r|r} (31,000) & (21,200) \\ \hline$230,900 & $206,500 \\ \hline \end{tabular} Liabilities and Equity Accounts payable Total current liabilities \begin{tabular}{rr} $33,000 & $35,200 \\ 600 & 800 \\ \hline 33,600 & 36,000 \end{tabular} Equity Common stock, no par value Retained earnings Total liabilities and equity \begin{tabular}{rr} 165,900 & 153,100 \\ 31,400 & 17,400 \\ \hline$230,900 & $206,500 \\ \hline \end{tabular} MONTGOMERY INCORPORATED Income Statement For Current Year. Ended December 31 \begin{tabular}{lr} Sales & $61,200 \\ Cost of goods sold & (25,400) \\ Gross profit & 35,800 \\ Salaries expense & 7,500 \\ Depreciation expense & 9,800 \\ Income before taxes & 18,500 \\ Incone tax expense & 4,500 \\ \cline { 2 - 2 } Net income & $14,000 \\ \hline \end{tabular} Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $12,800 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. 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. Changes in current operating assets and liabilities