MONTGOMERY INCORPORATED Comparative Balance Sheets AtDecember31AssetsCashAccountsreceivable,netInventoryTotalcurrentassetsEquipmentAccumulateddepreciation-EquipmentTotalassetsLiabilitiesandEquityAccountspayableSalariespayableTotalcurrentliabilitiesEquityCommonstock,noparvalueRetainedearningsTotalliabilitiesandequityCurrentYearPriorYear$53,10018,300164,000235,40090,800(41,000)$285,200$43,50070044,200208,60032,400$285,200$53,40022,700131,300207,40077,600(28,600)$256,400$47,60080048,400190,60017,400$256,400 MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 \begin{tabular}{lr} Sales & $65,300 \\ Cost of goods sold & (27,100) \\ Gross profit & 38,200 \\ Salaries expense & 8,100 \\ Depreciation expense & 12,400 \\ Income before taxes & 17,700 \\ Income tax expense & 2,700 \\ \hline Net income & $15,000 \\ \hline \end{tabular} Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $18,000 cash. c. Purchased equipment for cash; no equipment was sold. MONTGOMERY, INCORPORATED 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 not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Cash balance at beginning of year Cash balance at end of year