MONTGOMERY INCORPORATED Comparative Balance Sheets At Docember 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 paryable Total current liabilities Equity Common stock, no par value Retained earnings Total liabilises and equity MONTGOMEEY INCORPORATED income Statement For Current Year Ended December 31 Sales Cost of goods sold Crows profit Salaries expense Derreciation expense income betore takes income tax expense Net income Addinsonal information on Current-Year Transactions a. No dividends are declared or paid b. Issued additional stock for 510,000 cash. c. Purchased equipanent for cash; no equipment was sold: hequired: 1. Use the above information to prepare a statement of cash flows for the current year uning the indirect method. 41 42 2 Use this list for cell referencing with the previous tab as needed. Not every item on this list may be needed. 3 Cash paid for equipment 4 Cash received from stock issuance 5 Decrease in accounts payable 6 Decrease in accounts receivable 7 Decrease in inventory 8 Decrease in salaries payable 9 Depreciation expense 10 Increase in accounts payable 11 Increase in accounts receivable 12 Increase in inventory 13 Increase in salaries payable Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash used in operating activities: Income statement items nit affecting cash 11 Changes in current operating assets and liabilities